Jaime Carrasco: We Are Feeling Tremors of the Impending Earthquake in the Bond Market
Jaime feels that recent market activity is a good signal of what is coming. He says, “There aren’t many safe havens left, and one of the few is precious metals.”
He mentions the Comex chairman commented that gold should be above $5000. The paper market has been suppressing the price of gold through derivatives. People need to understand they are living in a complete facade and when this game is over, there will be a re-balancing.
Some country is going to peg their currency to something that can be trusted. Central banks are buying gold and people are waking up as bullion premiums are starting to rise.
Jaime feels that the ten-year will continue to rise and that major tremors are coming. The bond market is the real market because it’s so much larger. Interest rates rising are increasing the cost of debt and put further downward pressure on the Dow.
The next few weeks will be crucial as he thinks the Republicans may take the house. Jaime feels that Fed policy is in line with Trump’s objectives which is to unwind this debt event. He says, “I see Trump as the king of bankruptcy.” Trump will then have full control and what happens when Trump doesn’t play ball.
As interest rates rise they will lose control of the currency trends, and it will devalue. Mr. Carrasco thinks investors should be prepared for even worse markets than in 2008. The longer it takes for gold to rebound the higher it will go.
Talking Points From This Week’s Episode
• There is much potential for inflation as rates increase.
• The yield curve hasn’t flattened it has started to increase.
• Investors should watch the banking indexes.
• The bubble has only gotten bigger since 2008.
• A monetary reset is inevitable, have twenty percent of your assets in gold.
Jaime Carrasco is portfolio manager at Canaccord Genuity Inc. in Toronto. From 2014-2018 he worked as Director of Wealth Management and Associate Portfolio Manager for ScotiaMcLeod. Before this, he worked for Macquarie Group, CIBC Wood Gundy, BMO Nesbitt Burns, Gordon Capital, and Merrill Lynch.
As a leading edge Canadian investment professional with 25 years of experience providing wealth management and investment counsel to affluent families, businesses and institutions both in Canada and Latin America, Jaime has garnered a reputation for questioning and challenging the status quo and exploring the most innovative investment strategies.
Jaime, whose mother tongue is Spanish, also speaks Italian and French and completed a BA in political science and economics at the University of Toronto in 1988. While a student, he worked for CS Yacht, a company that built luxury sailboats, thus spending his summers as a skipper for members of the Canadian establishment. Jaime credits this experience, and having survived sailing through Hurricane Bob in 1991, for learning lessons that have become a metaphor for his financial investment strategies;
“Like one’s financial wealth, sailing is not about controlling the wind, but rather about adjusting the sails.”