Time to 'Reset' Your Investment Portfolio in 2021? / Commodities / Investing 2021

If global elites have their way, 2021 will bethe year of the “Great Reset.”

They believe now, after the coronavirus and lockdownpolicies have inflicted a heavy toll on the public, is the perfect opportunityto implement their technocratic vision.

Their longstanding plans to transform economiesin the name of various “sustainability” and “equity” goals are beingaggressively implemented.

World Economic Forum chairman KlausSchwab vows,"a renewed focus on public health and resilience, net-zero pledges and thearrival of Stakeholder Capitalism Metrics—all but ensure that 2021 will be anew 'Year Zero.'"

The reset that is coming may not necessarily bethe one that globalist central planners are trying to impose, however.

Markets have their own way of resettingaccording to economic, political, and monetary realities.

The Federal Reserve is currently embarked on acampaign to raise the inflation rate. Jerome Powell and company imagine theycan engineer a gentle increase in price levels without causing any disruptions,then push back down on inflation before it becomes a serious problem.

What could go wrong? Given that the stock andbond markets are priced for low inflation, the entire financial system couldhave go through a great (and painful) repricing to reflect acceleratingcurrency depreciation.

The U.S. dollar may fail to rally underconditions that would have signaled tighter monetary policy in previous eras,begetting even more inflation.

According to a recent WallStreet Journal commentary, “If markets takethe Fed at its word, they won't bid up the dollar as they normally might inresponse to robust inflation or growth data out of the U.S. This is why TSLombard economist Steven Blitz calls the new framework an effective end to thetraditional ‘strong dollar’ policy of the U.S. government.”

Investors who have heavy exposure to the U.S.dollar via bonds, money market funds, and the like, may need to reset theirportfolios before inflation wrecks their value.

Similarly, those who hold stocks because theybelieve “TINA” (there is no alternative) shouldn’t assume they will be the bestalternative to bonds and cash going forward.

The ultimate alternative to a depreciating fiatcurrency that is being printed into oblivion is hard currency – gold and silver.

Precious metalsinvestors can also benefit from reevaluating theirassumptions, strategies, and holdings from time to time – and the New Year maybe a good impetus.

Even if you had a successful year in the marketsin 2020, you likely made some mistakes or missed some opportunities. (Don’t youwish you had bought more silver when it was trading under $15/oz last spring?)

Of course, in retrospect we’d all make geniusinvesting moves. But the reality is that future market swings are inherentlyunpredictable in terms of their timing and magnitude.

In terms of fundamental value and long-termprospects for appreciation, investors can make decisions with much greatercertainty.

A 30-year bond is currently priced to pay out anegative real yield (below the Fed’s own inflation objective) each of those 30years. That’s slow-motion wealth destruction.

Over the next three decades, it’s possible forprecious metals markets to go through cyclical downturns – some perhaps severe.But it’s also a virtual guarantee that gold and silver will ultimately rise asthe value of the dollar “resets” lower.

Stefan Gleason isPresident of Money Metals Exchange, the national precious metals company named 2015"Dealer of the Year" in the United States by an independent globalratings group. A graduate of the University of Florida, Gleason is a seasonedbusiness leader, investor, political strategist, and grassroots activist.Gleason has frequently appeared on national television networks such as CNN, FoxNews,and CNBC, and his writings have appeared in hundreds of publications such asthe Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2020 Stefan Gleason - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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