The past week gave investors plenty to worry about. Tech stocks plunged, Nvidia (NVDA) lost its CEO, Jensen Huang, and Congress has threatened to grandstand its way into the scandal.
The same uncertainty driving investors out of speculative assets is sending them toward dollars and Treasury securities. While investors sold technology shares, the U.S. dollar Index climbed to a 19-month high:
For individual investors, the Nvidia succession story won’t amount to much. Shares have already recovered from the 15% haircut they took yesterday morning.
A far more compelling story is the greenback’s current rally, which provides a roadmap for nervous selling in tech through the end of the year and into 2027.
Meanwhile, the knuckleheads in Washington continue to run a massive $2 trillion annual deficit, pushing the national debt past 124% of economic output. As we laid out during our Final Reckoning Summit, the Treasury is forced to bid aggressively for capital alongside tech giants, driving borrowing rates upward.
Elevated yields offer temporary support for the greenback, yet they simultaneously inflate the government’s debt service burden. Congress is too busy gorging on politics to rein in spending, worry about that pesky debt or help Treasury Secretary Scott Bessent keep interest rates in check.
Now is a good time to use dollar strength to accumulate profitable precious-metal businesses at discounted prices.
With gold dipping below $4,000, in the Grey Swan Resource Investor we favor established producers that generate free cash flow at substantially lower gold prices, as well as royalty companies that collect revenue without financing entire mining operations.
We’re looking for low production costs, manageable debt, disciplined management and limited need for new equity. Avoid heavily indebted developers whose projects require expensive financing.
When gold recovers, producers – profitable already at these prices – will enjoy another round of expanding margins and rising free cash flow. Royalty companies offer a less capital-intensive way to participate.
The immediate risks are further dollar strength, sustained high real yields and rising mining costs. Your opportunity depends on buying sound businesses at prices that already reflect those risks.
Bitcoin remains a separate, higher-volatility speculation. In today’s Pro, Andrew goes back to the well with the bitcoin standard.
~ Addison
P.S.: You may be far more exposed to tech than you realize, even if you’ve never bought a single tech stock. Right now, 4 out of every 10 dollars in the stock market sit in just 10 companies. That’s a bigger share than at the very peak of the dot-com bubble.
If you own an index fund, a 401(k) or almost any retirement account, your money is riding on a handful of tech behemoths. And starting November 16, those giants are headed for a collision with Washington.
Most investors won’t see it coming until it’s too late.
That’s why Strategic Fortunes chief strategist Ian King, Money & Markets chief investment strategist Adam O’Dell and I have teamed up in a new service called The Alliance.
We’ve built a 12-position Final Reckoning Portfolio designed for whatever happens next as this market shift takes place. You’ll also receive weekly portfolio updates, alerts and new investment ideas from all three of us.
Click here to get the full details.
P.P.S. Grey Swan Live! returned yesterday with Zoltan Istvan.
We covered Zoltan’s February analysis on the backlash against AI development – which was on full display during last week’s midterm elections.
And we looked at what comes next in AI – including where the next round of AI winners will come from.
See you this afternoon at 2 p.m. ET for the latest in the AI trade.
