Peter Grandich: This is the Financial Bubble to End all Bubbles
Tom welcomes returning guest Peter Grandich to the show. Peter discusses how the markets have changed over his career and are now high-tech casinos.
The Fed has destroyed the fixed income market, pushing people to take riskier plays on their retirement investments. He expects stagflation as inflation increases and the economy underperforms. The Fed is trapped since it can’t raise interest rates because of excessive debt. A few percentage point increase would equal half of the government’s income.
Peter believes that the political system no longer has the political will or ability to address these problems. Politics has become an almost impossible place to accomplish anything.
The largest holder of US government debt was Japan, but they sold most of their treasuries last year. In addition, we continue to see countries like Russia and China move further away from the dollar and into gold. So it seems we are rapidly reaching the end of the road for the dollar.
Complacency today is off the scale, as half of all financial advisors today have never experienced a bad market. Most investors are operating on “hope” that markets will continue higher. Now maybe the time to err on the side of caution.
Gold has massive potential, but you won’t see Wall Street say anything favorable about it. So if you’re looking for assets that are under-owned and unappreciated, look towards gold and silver.
Peter explains why he is bullish on uranium-based solely based on the supply-demand fundamentals. In addition, there are only a handful of uranium companies. Most of the utilities have yet to renew their long-term contracts and will likely end up doing so at much higher prices. Nuclear has to be included if we are going to meet future base demand for energy. Solar and wind are not going to solve these problems by themselves.
Peter gives us his thoughts on bitcoin, including some technological risks and why he is concerned about the excessive enthusiasm in that market. Also, there is a risk of further regulatory and political pressure being applied.
Talking Points From This Episode
- Retirement portfolios and return risk.
- Political ineptness and investor complacency.
- Alternatives to the dollar.
- Opportunities with uranium and energy requirements.
Time Stamp References:
0:00 – Introduction
0:37 – Bubbles & Risk
3:45 – Algo Trading
4:47 – China Influence
6:36 – Cash Positioning
10:00 – Inflation & Rates
13:49 – Debt & MMT Theory
16:06 – Political Will?
18:43 – Short Positioning?
22:20 – Alt. Currencies
23:58 – Gold Correction?
27:25 – Choosing Miners
30:28 – Uranium
33:10 – Public Opinion
34:47 – Bitcoin
40:09 – Wrap Up
Peter Grandich entered Wall Street in the mid-1980s with neither formal education nor training. Within three years, he was appointed Head of Investment Strategy for a leading New York Stock Exchange member firm. He would hold positions as Chief Market Strategist, Portfolio Manager for four hedge funds, and a mutual fund that bore his name. His abilities have resulted in hundreds of media interviews, including Good Morning America, Fox News, CNBC, Wall Street Journal, Barron’s, Financial Post, Globe and Mail, US News & World Report, New York Times, Business Week, MarketWatch, Business News Network and dozens more. In addition, he has spoken at investment conferences worldwide, edited numerous investment newsletters, and was one of the more sought-after financial commentators.
Grandich has been a member of the National Association of Christian Financial Consultants, The New York Society of Security Analysts, The Society of Quantitative Analysts, and The Markets Technician Association. He is an active supporter of Athletes in Action, the Fellowship of Christian Athletes, Good News International Ministries, and Catholic Athletes For Christ. Through Athletes in Action, Grandich assisted with Bible study and chapel services for the New York Giants and New York Yankees from 2002 to 2016.
His autobiography, Confessions of a Wall Street Whiz Kid, was first published in 2011 and is now on its fourth printing.
Peter Grandich resides in New Jersey with his wife, Mary, and has one daughter, Tara. In 2015, he turned a three-decade dream into a reality by opening a storefront office in the “Norman Rockwell style” Jersey Shore town of Spring Lake. He then extended that vision by opening a satellite office in Millstone Township in 2019.