🇺🇸 Gold fell back under $4,000 this week and the bond market still lost to it by 138 points since 2022... and the math behind the buying has half of Washington's income going to interest within a decade
Washington took in $5.2 trillion last year, its best haul ever, and Peter runs the math: 5% on the $50 trillion the budget office projected for 2035 is $2.5 trillion a year in interest, about half of what came in.
Peter Grandich, a 42-year Wall Street veteran who dumped gold in January and went fully back in on Friday, gives investors one rule for what's coming:
"Don't try to win. Just try not to lose."
Peter says Wall Street generalists started buying physical gold in the last 12 months because the old 60/40 portfolio is turning into 60/20/20 with gold taking part of the bond slot, and that with over 60% of market money now in passive funds, the next downturn won't be normal, because index funds have to sell into it.
Add fertilizer shortages out of the Gulf and the next phase of this war shows up at the grocery store, which means the fight over who pays the interest starts long before 2035.
@WeTheBrandon @PeterGrandich
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