US gov. debt market collapse has started
This has MASSIVE implications for the economy
A thread 🧵
This has MASSIVE implications for the economy
A thread 🧵
2/ US government bonds have broken below a 40-year uptrend
After experiencing one of the most aggressive bear market since the 1980s
After experiencing one of the most aggressive bear market since the 1980s
3/ Treasury bonds, typically 40% of an investor's portfolio, have led to significant losses because of their sharp decline
4/ Since March 2020, gold has outperformed Treasury bonds by +100% amid surging government spending
Government expenditures have risen from $3.4 trillion to almost $4 trillion in just 2 years
Government expenditures have risen from $3.4 trillion to almost $4 trillion in just 2 years
5/ Constantly rising government spending, financed by issuing more Treasury bonds, is a BIG problem
This has caused bond prices to drop significantly
This has caused bond prices to drop significantly
6/ Treasury bond issuance in 2024 is expected to hit $1.9 trillion
This level is higher than even the peak of the 2008 Financial Crisis levels
This level is higher than even the peak of the 2008 Financial Crisis levels
7/ Although we expect a bounce in bonds, our long-term outlook on it is bearish
You can find our latest Watchlist and all our Trade Setups with at:
bit.ly/GameofTrades
You can find our latest Watchlist and all our Trade Setups with at:
bit.ly/GameofTrades
8/ A key factors that’s driving this long-term breakdown in Treasury bonds is the decline in labor force participation rate
This metric has shown a strong negative correlation to US government debt since 1999
This metric has shown a strong negative correlation to US government debt since 1999
9/ The decreasing labor force participation + increasing government debt indicate economic strain
This is because of more people retiring and fewer people working
The combination has required the government to increase its spending
This is because of more people retiring and fewer people working
The combination has required the government to increase its spending
10/ With the aging US population and more people retiring
Labor force participation is likely to decline further
This would increase government debt even more, unless spending changes
Labor force participation is likely to decline further
This would increase government debt even more, unless spending changes
11/ That’s why Gold has seen a lot of bullishness
Surging +35% since Oct 2023
Our members have already secured a 22% gain on $GDX when we booked partial profits on 23rd May
And continue to hold the rest for more upside
Surging +35% since Oct 2023
Our members have already secured a 22% gain on $GDX when we booked partial profits on 23rd May
And continue to hold the rest for more upside
12/ You can check all our 2024 closed trades for FREE on our landing page
It's been a solid year for our members with an average win of 16.92% and average loss of just 3.93%
It's been a solid year for our members with an average win of 16.92% and average loss of just 3.93%
13/ Join us now for just $1.45/day to access our real-time Trade Alerts with full details:
- Long/Short position
- Allocation weight
- Entry
- Stop-loss
- Reasoning for the trade
bit.ly/GameofTrades
- Long/Short position
- Allocation weight
- Entry
- Stop-loss
- Reasoning for the trade
bit.ly/GameofTrades
14/ Thanks for reading!
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