A Financial Market Apocalypse Is Approaching, the Fed Is Calling the Shots

A wealth redistribution not seen since 1929 may be about to begin globally. Investing in physical gold could serve as a sensible safe haven.

Financial markets are currently drifting in a state of relative calm. Professional investors continue to follow the BUY THE DIP principle that worked well throughout the past 10–15 years, hoping that the greater part of the correction has already run its course.

However, Zoltán Pozsár, the renegade star economist at Credit Suisse, is sounding the alarm: in his view, the Fed is showing a serious willingness to drive markets hard into the ground.

The only question is whether they will allow the enormous bubble pumped up in bond and equity markets in recent years to deflate back to pre-Covid levels, or even further.

Pozsár sets out the possible scenarios in detail in his memo published on 13 May 2022, which you can read by clicking here.

Despite voices crying wolf — now with every justification — growing ever louder, many people still have not recognised that the next financial market crisis has not even begun yet.

In the United States, the situation that lies ahead could be more severe than the stagflationary episodes of the 1970s and 1980s, since back then drastic interest rate rises ultimately succeeded in curbing inflation and putting the economy back on a growth path.

Today, however, the extremely high national debt of the United States — and the West as a whole — means that this central bank instrument cannot work on its own: people will be made to pay the price of the financial binge of recent years through the depreciation of their accumulated savings.

Hungary's open economy leaves it in an extremely exposed position, which means that those saving in forints must pay particular attention to choosing the right investment instruments in the years ahead. Fortunately, we are still at the very beginning of the wealth redistribution, so it is not too late to reconsider our investments.

Gergely Juhász, CEO of Conclude Zrt., which operates Goldtresor, has compiled a collection of charts that may help in making the right decision. The chart collection with explanatory text is available by clicking here.

Read through it, think carefully about your financial situation, and — before you head off on holiday — make what currently appears to be the only sensible investment decision: buy physical gold.