Thursday, July 23, 2020

Time to lie low

Just saw an  article on likely bank NPA's in the near future, due to covid related economic devastation.

 There are a lot of worms in the woodwork, ready to pop out. This is true across the world. 

The markets meanwhile have been defying the laws of economics, common sense, and gravity. A lot of this has to do with liquidity that is being pumped into the system being diverted to assets , rather than to real production.

There is a high probability of some kind of collapse in the markets, in the next few months. Continuous QE's will result in a shock sometime, covid could be that catalyst. 

The central banks' response of more QE  to all economic problems nowadays , is being copied by the people for  the covid problem: mask the problem, don't know solution, waiting for a miracle vaccine which will worsen  the organism's health further,  and pray! And do nothing to improve the health of the organism anyway.

The world is living on vain hopes and prayers. Nature's law is merciless, but just.  Any organism that ignores the fundamental principles of health, and goes against immutable natural laws, will face the consequences. This applies as much to economies as to individuals.

My prescription for the near foreseeable future:

Lie low. Shift investments to debt bearing zero credit risk, yield is immaterial. Consider buying some gold. Eat well, sleep well, exercise, step out into the sun, be happy. And you don't have to bother with the mask, really

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