Fools’ gold and gold

Credit is beginning to implode, starting with equities. Investors are wavering, not knowing where to go for safety. Bitcoin? It corelates with tech stocks. The public have been fooled.

Introduction

Last weekend, I put out a note to my Substack paying subscribers detailing the differences in valuation between bonds and equities, and that by this measure, equities are more overvalued than they ever have been before. The timing of my article was prompted by developments in Japan, leading to a substantial recovery in the yen, imposing huge losses on Japan’s institutional investments in US and other equities, which in response to the Bank of Japan’s negative interest rate policy had led them to seek better returns abroad.