2025 will be a year of shock and awe because of Ukraine – Stocks, bonds and real estate

The geopolitical situation is more precarious than ever in world history due to the crises in Ukraine and the Middle East.

The “deep state” in the US, the neocons led by Biden, are doing everything they can to provoke World War III, provoking Russia with missiles from the US and the UK launched deep into Russian territory. It is worth noting that there are 8 weeks left before Donald Trump takes office as US president.

Indeed, this is a completely irrational and irresponsible policy by an uncontrolled and anonymous group of people who cannot accept the loss of US hegemony.

At the same time, government debts worldwide are increasing. We know that the US debt, which exceeds $35 trillion, has a service cost of over $1.8 trillion and is expected to exceed $38 trillion in the coming years, will never be repaid.

Instead, it is constantly inflated by printing new, worthless paper money, until it becomes worthless. This is de facto bankruptcy. Remember that this has happened to all currencies in history, without exception. Since 1971, when Nixon closed the “gold window,” the dollar and most currencies have lost 99% of their value.

Markets

Nevertheless, the stock market is constantly moving up. In this unfavorable environment, it is reasonable to assume that it is overvalued.

Sooner or later, the hot currents of credit are going to meet the cold reality of rising interest rates. When that happens, stocks, bonds and real estate will likely experience a dramatic drop in their prices.” Some investors will suffer big losses.

Markets correct all the time. But we do not make predictions. We are simply looking for the worst-case scenario. And that could be much worse than a simple market crash.

Therefore, the only market that is on the verge of a major rise is that of gold, as: Wars continue to destroy the world, inflation is rising sharply due to ever-increasing debts and deficits, currencies continue their path to ZERO, the world is abandoning stocks, bonds and the dollar, BRICS countries continue to buy increasingly large quantities of gold, Central Banks are buying significant quantities of gold as foreign exchange reserves instead of dollars, investors are rushing to buy gold at any price to preserve their wealth.

Notably, gold has yielded much higher returns with less volatility. In particular, over the past 24 years, the S&P 500 index, including dividends, has increased by 572%, while gold has increased by 990% over the same period.

Gold ownership remains a “hidden secret.” Very few, even professional investors, know that gold has increased 11-fold since 2000. On the other hand, the combined market capitalization of the ten largest U.S. companies is $19.2 trillion.

If we look at the “gold cube,” the value of all gold ever produced is $17 trillion, or $2 trillion less than the 10 largest companies. This comparison shows how significantly undervalued gold is today.

Consider how critical its value will be in a world facing increasing geopolitical, economic, and monetary uncertainties.

 

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TRUST ECONOMICS

Trust Economics is a specialized independent economic research, analysis and consultancy business. Our team provides ingenious analysis in the macro & micro economic field, in the field of financial market, regional and sectoral analysis equally, forecasts, consultancy, specialized studies-research/projects from its headquarters in Athens, Greece.

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