Compounding Your Assets Without Adding New Money

McAlvany Weekly Commentary

Increase Your Ounces Of Precious Metals Through Prudent Trading Decline Number One (Last Week) To Be Followed By Decline Number Two Japan Spooked Out Of Interest Rate Increase "The markets, if I said the man in the street has moved on, he's not thinking hyper fragility. I'll tell you that market practitioners—the pros—recognize that last week was a reveal. It takes virtually nothing to upset the global financial markets and turn them inside out." —David McAlvany Kevin: Welcome to the McAlvany Weekly Commentary. I'm Kevin Orrick, along with David McAlvany. David, we talk often about legacy. But think about those quiet guys that you know through your life that maybe they never looked like they had a lot of money. It's funny how I talk to clients and they'll say, "Well, how much have I made?" And I'm like, "What do you mean? In dollars? That matters?" And they're like, "Yeah." Because that's how they're taught to think. But think about that farmer that you've maybe known or rancher or somebody who, they always drove an old pickup, but strangely enough their farm or their ranch just got bigger and bigger and bigger. And you'd say, "Well, how much do you have in the bank?" "Well, I've got, I don't know, $50,000. I've got about what I need." And you see thousands of acres around them that they had built through a lifetime of just carefully watching the land, trading when they needed to trade, and they've built an empire. And I think about that because if a person starts thinking in something other than these worthless paper dollars that just seem to be getting worth less and less and start thinking about compounding something real, Dave, that's what we do here. I've watched you do that. I've watched your dad teach us that. I've watched guys who've been in the business now— We work with one guy who's been in the business nearly 50 years. David: The information is an interesting thing. We live in an age where there's more information and more access to information than any other time in all of history. And so you've got data centers and storage for the information that's created. You've got the large language models which are trying to capture from that some sense of meaning and real content from these disparate informational nodes. And the best we can do is get stuck in a new cycle, is look at social media, is deal with things that will flip our script every five seconds, every 10 seconds, every five minutes, every five days. And what does it mean? What do we do in light of this? Kevin: What does it mean? See, you just now said— That's the key. What does it mean? What is real? David: And I think this is where having a framework for thinking about things is really important, because it's easy to get lost in the details, in the informational data points, and not have a way of processing it. I appreciate Doug Noland's approach, we did the Tactical Short call this last week. That's available if you want to listen to it or go through the transcript. And there's a framework for understanding the information that is presented to us each day, but it has a context. What we try to do with the Commentary now for 17 years is create context so that as things shift, there's a larger picture in mind that helps us make sense of what this stuff is as it unfolds. Whether it's conflict in Ukraine and Russia or conflict between Israel, Iran, and Hezbollah. These are all things that need context. And without it, what does it mean? And where do we go next? There's more confusion. And I think what happens eventually is people's minds begin to shut down. You get numbed and you're on what is basically informational overload. So what do you do? You just start ignoring all of it. There's a numbness that is a part of life. Kevin: It's the breaking news thing. I remember when they first came out with that breaking news. Breaking news used to actually mean something important. Now it's breaking news all the time.