It is possible that the miners will finally start to see some real investment flows. We won’t know for a quarter or two what yields will be given the new price levels for the metals, but simple math suggests that a 20-30% increase in revenues, while costs remain the same, will end up having positive effects on PE ratios. Meanwhile, the sector map is signaling risk-off. It’s never a good sign when utilities and REITs move higher. And for these inflows into safe-haven utilities to happen when money is flowing out of the long-dated Treasuries…that smells like a public-to-private move, which lines up with the “confidence collapse” framing of the overall US.
The good news is, no big rallies in crude (or gold, or silver) heading into the weekend, so hopefully we have a peaceful time of it. And boy, wouldn’t it be interesting if Sprott funds have turned into “unobtanium” over in Europe? That might be a precursor event to an actual – long-awaited – COMEX default. Yes, I said it.
[Sample below of one of dozens of assembled news items for the week]
Confidence Collapse
Von der Leyen Vows To ‘Vaccinate’ EU Population Against ‘Wrongthink’ [May 27; 1m30] (source – x/newstart_2024);
My analysis: If we watch closely, “pre-bunking” might give us advance knowledge of the “bunk” that “they” are preparing to drop on us.