Kevin Wadsworth & Patrick Karim: Major Capital Rotation Event into Gold is Just Starting

Palisades Gold Radio

In this episode of Palisades Gold Radio, Tom Bodrovics welcomes back Kevin Wadsworth and Patrick Karim for a discussion on the probably capital rotation event coming soon to commodities generally and the stock market. They explore evidence suggesting gold's outperformance over key indicators like US money supply, the dollar index, and major indices such as S&P 500, Dow Jones, Nasdaq, and Russell. Kevin and Patrick highlight that significant shifts occur when sectors underperform gold for extended periods (10-15 years), often leading to substantial drops before recovery. They caution Bitcoin holders about potential underperformance during this rotation, a sector historically correlated with tech stocks. The conversation delves into the historical performance of SPX and NASDAQ versus gold, noting tech stocks and Bitcoin's significant drawdowns but eventual recoveries. Yet, these assets often lag behind gold for prolonged periods, resulting in real losses for investors holding them. The charting duo emphasize the importance of comparing any investment assets to the benchmark of gold, to gauge market shifts. They advocate investing in gold during market confusion and stress understanding that gold is currently in a bull era. Additionally, they discuss the importance of risk management, patience, waiting for clear trends before entering markets, and avoiding concentration in single investments or chasing bottoms and tops of markets. Ultimately, Kevin and Patrick stress patience, a long-term perspective, and applying 'the gold test' before any investment decision. Time Stamp References:0:00 - Introduction1:20 - Capital Rotation Event2:07 - Capital Rotation Charts12:57 - Equities Vs. Gold14:18 - Bitcoin Correlations22:00 - Killing Narratives24:40 - Ratio Analysis & Trends28:34 - Gold Vs. Everything32:24 - DXY Vs. CPI Chart38:48 - A Technical Approach44:18 - Public Debt Analysis48:23 - Miners & Speculation52:04 - Most Commodities?54:08 - Risks - Tops/Bottoms57:57 - Technicals & Analysis1:04:53 - Entry Points & M.A.1:10:09 - Uranium Miners1:12:06 - Wrap Up Guest Links:Twitter: https://x.com/NorthStarChartsWebsite: https://NorthStarBadCharts.comYouTube: https://youtube.com/c/NorthstarCharts Kevin Wadsworth is a seasoned chart trader with over 15 years of experience and a strong following on social media. With a background in meteorology spanning over 30 years, he has worked in various professional roles, including military and civilian weather forecasting. Currently serving as a Civil Contingency Advisor, Kevin provides advanced warning and guidance for life-threatening weather events and collaborates with emergency response teams. His interest in the financial world was sparked by a colleague in the early 2000s, and he became particularly fascinated after the 2008 financial crash. Drawing parallels between weather forecasting and predicting market movements, Kevin emphasizes the importance of gathering evidence from various sources, much like assessing multiple weather models. His approach focuses on presenting clear, unbiased charts based on the weight of evidence, rather than personal bias. Kevin's expertise lies in distilling complex information into actionable insights, whether it's forecasting weather patterns or market trends. Guest Links:Twitter: https://twitter.com/badcharts1Website: https://NorthStarBadCharts.comYouTube: https://youtube.com/c/NorthstarCharts Patrick Karim is a proprietary capital manager and chart trader since 2006. Patrick's background in commerce, psychology, and an ongoing career in systems engineering has allowed him to evaluate trading scenarios systematically. His psychology background helps him understand the human factor: overcoming stress, which is mostly responsible for maintaining a successful career.