102 days ago • Posted by Charles-Henry Monchau
Silver performed extremely well last time we saw such a Democratic sweep across the White House and the Congress
Crescat Capital Q4 letter: "With the new Democratic leadership in place, we believe fiscal extravagance is here to stay. The last time we had such a sweep across the White House and Congress was in early 2009. It is important to note that the precious metals markets took off at that time to have one of their best runs in history over the next two and a half years. As the chart shows, silver went up by 327%. We think the macro setup for gold and silver, and related mining stocks, is even more compelling today. The economy has a major debt imbalance that is now compounding at an incredibly fast pace due to a fiscal and current account deficit problem. In addition, financial markets are tightly dependent on Fed policies to continue to suppress interest rates to allow institutions to service their debt and prevent risky assets from collapsing at historic valuations.