"Supply Chain - the sequence of processes involved in the production and distribution of a commodity."
I keep scratching my head and fear for the over exuberance of the equity markets. Are we the only ones who can see the inevitable impact of the Corona virus on the Supply Chains around the world and its inevitable economic consequences?
While that question is rhetorical, it still makes me wonder why people haven't yet begun a retreat to safety.
After all there are many smart people around the world and surely, what we can, see they can see; yet the many headed hydras of the equity and financial markets continue to act as if nothing is happening. The benefit of unbridled fiat printing and government interference acts as a buffer to the realities of markets which increase euphoria and push valuations to ridiculous levels. Whereas in the past one looked to earnings to create price valuations now the potential for profit relies on artificially rising share prices. The fear of missing out, cheap money and a market which does not reflect common sense makes me very scared. From my warm and cosy nest, I see the lemmings running towards the cliff.
Eventually all this will have to be paid for. There will be much economic carnage and all we be affected as a consequence
If component parts cannot be made, or cannot be transported, or cannot be distributed, or cannot be utilised, or cannot be purchased by end users; then we have a break in the supply chain. All parts must interlink or the system breaks down and the flow on effects will effect every supply point along the way.
Surely everyone must be able to see that. This is what will break the markets.
I have spent a lot of time looking at the Corona Virus and from what I can see, it doesn't appear as if it is going away soon. It is spreading, highly transmissible and requires long periods of isolation. If the component manufacturers cannot make the parts or assemble the products, the supply chains break down and this is precisely the effect the Virus is having on China. Now that China is sneezing I believe the whole world is going to catch a cold.
Look after yourself and your families. Buy Gold and Silver now. Many buying opportunities will arise in the future and people will want something real and tangible. Gold and Silver can only go up in value from here. Ignore the bumps along the way and look at the longer term.
