1. In US Markets, there is a major disconnect  between the wall street and main street.
  2. It’s a dilemma why equity markets are strong. Are they strong because of anticipated recovery, or is it due to artificially low interest rates and quantitative easing.
  3. Even DEBT rally is questionable as the artificially low interest rates are forcing savers to invest in risky debt for higher yield.
  4. Construct & foundations of the current bull market is not sound.
  5. Liquidity injected by FED has lifted all boats. But fundamentals have been ignored. In the long term, fundamentals matter over liquidity.
  6. Seasoned investor think that a share or a stock is a stake in a business. Whereas a Robinhood investor these days think that a stock is an object of gamble which is paying off in the current momentum.
  7. It is difficult to say how high the tide will go. Whether it will recede in 1 or 2 or 3 years. But when it ends, it will leave gamblers in tears.
  8. As long as there is global confidence in US Economy, the QE will work. But, if and when it is shaken, we will see the ugly side.
  9. One can be upbeat about some unique business models led by amazing companies. But there is no reason to be euphoric about S&P 500 as a broad market.
  10. Collusion between Fed injected liquidity and poor economic fundamentals, yields nothing but volatility. Therefore, one should buy those businesses that are undervalued and are going to be around for next 20 years. Also, maintain enough liquidity in the portfolio

Rick Rule is President & CEO of SPROTT US Holdings. Rick has an experience of 45 years in Wealth Management


By Sameer Rastogi

18 years of experience, PG in Finance and has delivered Wealth Management lectures at IIM Lucknow, IBS Gurgaon and IIPM Delhi. Contributed to various newspapers. Strength – Application of Economic fundamentals to Investment

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