Jaime Carrasco: We Can See It, We Can Sense It, The Storm is Coming
Jaime discusses inflation and how the signals for it are getting stronger. Alan Greenspan warned a year ago that we are heading for stagflation and could revisit the 1970’s. That same week Terrence Duffy head of the Comex stated that “If measured by inflation gold should be between two and three thousand.”
Russia and Saudi Arabia are entering into a new pricing arrangement which is yet another threat to the US petrodollar. Continued de-dollarization, populist political shifts, central bank actions, and derivatives are all ongoing risks. The reality is a monetary reset is coming. The numbers that keep coming out show massive systemic risk and something has to give. We could be getting set up for something bigger than 1929.
In Europe and notably Italy there is a massive monetary dislocation. Keep a close eye on Deutschebank as they are a big weak link and they increasingly resemble 2007 Lehmann Brothers. They are sitting on 42 trillion worth of derivatives.
The Federal Reserve has been loaning money to the banks at meager rates, and now they have announced that they are closing the lending window. This means the banks will soon have to make money on their own.
Stock prices are holding up for gold producers reasonably well despite the decline in the gold price. This indicates that smart money may be getting involved. Jaime says, “This for him is the best opportunity in his career. Get in there before everyone does and watch it build.”
Talking Points From This Week’s Episode
• Deutschebank looks like Lehmann Brothers in 2007.
• A monetary reset looks inevitable.
• Markets could go higher as inflation takes off.
• People need to take a contrarian view and start hedging.
• There are ways to take advantage of the dollar decline.
Jaime Carrasco is portfolio manager at Canaccord Genuity Inc. in Toronto. From 2014-2018 he worked as Director of Wealth Management and Associate Portfolio Manager for ScotiaMcLeod. Before this, he worked for Macquarie Group, CIBC Wood Gundy, BMO Nesbitt Burns, Gordon Capital and Merrill Lynch.
As a leading edge Canadian investment professional with 25 years of experience providing wealth management and investment counsel to affluent families, businesses and institutions both in Canada and Latin America, Jaime has garnered a reputation for questioning and challenging the status quo and exploring the most innovative investment strategies.
Jaime, whose mother tongue is Spanish, also speaks Italian and French and completed a BA in political science and economics at the University of Toronto in 1988. While a student, he worked for CS Yacht, a company that built luxury sailboats, thus spending his summers as a skipper for members of the Canadian establishment. Jaime credits this experience, and having survived sailing through Hurricane Bob in 1991, for learning lessons that have become a metaphor for his financial investment strategies;
“Like one’s financial wealth, sailing is not about controlling the wind, but rather about adjusting the sails.”