Efficient Markets vs Force Majeure
Are we really going there?
If you spend $80,000 a year on college tuition, nothing lower, you will learn about efficient markets.
All markets are efficient since all buyers and sellers are uniformly informed in our transparent financial system.
This makes it easy to investigate individuals or firms that consistently outperform the market.
An opinion piece in WSJ says it best on the unfortunate situation of an individual and his firm. Read about it HERE
For most of my readers, you will say hey I made 200% this year, or 1000%, no one is looking at me. Yeah, because you made it from small potatoes.
What I’m speaking about is when you are managing billions and crushing it annually. It makes the entrenched competition look like fools.
“Efficient market” is the word to CYA those bloated bureaucratic financial institutions from actually trying to outperform the markets.
And also, that word helps institutions act “surprised” when a market crashes and allows Congress to “investigate” market dislocations. Since markets are “efficient,” there must be a culprit.
Do you need further proof than Gold and Silver?
1000% gain in Sandisk?
Japanese Yen drop?
If a commodity or a stock surges, producers should be selling into the rally as the prices are elevated, and competitors should start to eat into a rapidly rising stock to limit its growth potential.
That’s how free markets work.
Well, FREE is for commies.
And sweetheart markets are anything but Free.
If you need an education on how business works, I’ll give you the best course known to man.
The markets seem to be going “there” which means FORCE MAJEURE
(Meaning there is no ability to deliver the agreed upon metal for the specified time period)
The market is going to force the exchanges to prove the availability of precious metals.
It’s the same thing with a trending stock, it’s going to keep going until something is proven otherwise.
As Rodney Newton posited:
The First Law of Motion applied to markets: A trending market will stay in that trend until acted upon by an outside force.
OUTSIDE FORCE
What outside forces could they be? Iran, Domestic unrest, China, Interest rates, Midterm elections.
What is EFFICIENT, this age-old battle between Business as usual and the disruptors.
If indeed there is just no metal around, then the miners are going to have their chance to get the capitalization needed to actually mine and not just prove resources.
WHICH MEANS
They are going to be spending money on the picks and axes to get the. metal out of the ground, which will be great for the mining ecosystem.
There is ONE key chemical that is needed to extract precious metals, like silver, and I found a wonderful company to consider, as it’s vital for any mining venture
(Like Nvidia for AI)
