Thread by @EdelweissWM

Mr. @TaviCosta is live discussing the new age of risk and how to effectively follow asset allocation at #EmergingIdeas2020 right now.

Watch him at bit.ly/39NG5jv.

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"Global central bank assets have surpassed the USD28tn mark - an all time high."

- Tavi Costa (@TaviCosta)

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"The fiscal indiscipline in the US started back in 1971, when the gold standard was broken, and a huge wedge between debt and GDP was seen during the GFC.”

- Tavi Costa (@TaviCosta)

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“The Crescat macro model is signaling a major disconnect between macros and stock valuations. Central bank assets have surpassed USD28tn - an all time high."

- Tavi Costa (@TaviCosta)

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"Tech sector in terms of market cap is at 43%, which is 26% higher than the peak of the tech bubble."

- Tavi Costa (@TaviCosta)

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"The divergence between corporate debt and bond yields tell us that companies are at record leverage."

- Tavi Costa (@TaviCosta)

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"US banks are lending a lot more money to the government than to households and other institutions."

- Tavi Costa (@TaviCosta)

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"History has proven during times of fiscal disorder gold tends to outperform equities. Inverted twin deficits suggest a massive upward movement in gold to the S&P 500 ratio is still ahead."

- Tavi Costa (@TaviCosta)

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"Foreign investors are currently holding the lowest percentage of marketable US Treasuries in 20 years. The Federal Reserve is becoming the buyer of last
resort.”

- Tavi Costa (@TaviCosta)

#EmergingIdeas2020 #Live #Conference

"Gold is rising with respect to every currency in the world - this is trend is likely to continue."

- Tavi Costa (@TaviCosta)

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"Money printing only supports financial asset bubbles for so long. Ultimately, QE drives flows out of overvalued stocks and credit into undervalued precious metals."

- Tavi Costa (@TaviCosta)

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"The entire precious metals industry is dirt cheap. Apple’s market cap is 3.5 times the size of the whole precious metals industry."

- Tavi Costa (@TaviCosta)

#EmergingIdeas2020 #Live #Conference

"There is soon going to be a second wave of Fed balance sheet. USD8.5tn of US treasuries will be maturing. I ask you, who are going to be the buyers? I can foresee an inflationary environment upcoming."

- Tavi Costa (@TaviCosta)

#EmergingIdeas2020 #Live #Conference

(1/2)"There may be an inflationary problem upcoming, which would cause investors to start buying tangible commodities to protect their capital. Inflation expectations will begin to rise and we'll see a drag on the equity side."

(2/2)" I see a scenario similar to right now but the opposite - economy doing better, but equity valuations doing worse. Debt would also have to be rolled and the Fed would have to print money and expand the balance sheets."

- Tavi Costa (@TaviCosta)

#EmergingIdeas2020 #Live

"Today we are seeing people not working and earning more than people actually working. This has never happened before."

- Tavi Costa (@TaviCosta)

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"Fed balance sheets have surpassed the PBOC balance sheets for the first time in 14 years.”

- Tavi Costa (@TaviCosta)

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"Because of no new major discoveries, I see the rise in price of metals not so much as a sign of revival but of upcoming inflation, combined with increase in money supply."

- Tavi Costa (@TaviCosta)

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"Did bitcoin steal gold's thunder this year? I am a fan of both bitcoin and gold. In the last few months, gold lost USD2tn in market cap and bitcoin has gained USD200bn during the same period. It's only about 10%, so I wouldn't say it's related."

- Tavi Costa (@TaviCosta)

"Comparing bitcoin and gold is unfair in terms of size; where gold lost USD2tn in terms of value in the last few months, bitcoin gained USD200bn, which is only about 10%."

- Tavi Costa (@TaviCosta)

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“Bitcoin should be compared with equity. Comparing bitcoin with a 9tn giant market doesn't make sense."

- Tavi Costa (@TaviCosta)

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"Silver has a higher potential of appreciation than gold in the next few years."

- Tavi Costa (@TaviCosta)

#EmergingIdeas2020 #Live #Conference

"When the Fed started QE 4, we saw that the mining companies were going to benefit a lot, so we went on a buying spree, we bought every mining company that's available, at that time they were down by around 70%."

- Tavi Costa (@TaviCosta)

#EmergingIdeas2020 #Live #Conference