Well-received by investors, author of 'The Ultimate Swing Trading Guide' Steve Burns is shorting the U.S. stock market and buying gold and silver. He has a large following on social media and has written more than 20 books.
Burns provides trading advice on the current market and expresses his strong concerns about it. For Burns, the current American market is caught in what he calls the 'largest bubble in the history of civilization.'
He said: 'The Federal Reserve is afraid of an economic recession, so it will not restrict monetary policy. The real risk is malignant inflation or the devaluation of the dollar.'
Burns states that we are in the largest bubble in the history of civilization. This is caused by an excess of U.S. currency in the financial system. It all goes back to the issue of the dollar. At the same time, a large amount of money is flowing into stock indices, while bonds and metals are rising. This is no longer reasonable; the prices of everything are going up. The amount of fear and uncertainty priced into the market right now is shocking.
Burns added: 'What is concerning is that although the Federal Reserve has lowered interest rates, they have not reduced mortgage rates. The Federal Reserve has lost control over the U.S. Treasury yield curve. The Federal Reserve is now in a dangerous position, and they have also lost control over interest rates. They can continue to cut rates, but banks do not want to lower mortgage rates, and bond investors want higher yields to compensate for the risks they are taking.'
Burns holds a lot of real estate as a hedge; he does not intend to be a long-term investor. Being able to average costs and benefit in a bull market is a great strategy during a long-term bear market. However, being a long-term investor was not a good choice during 2001 and 2002, or from 2008 to 2009. Many people took ten years to get their assets back to where they were.
Burns said: 'If we experience a 50% correction or crash, I would buy ETFs like gold and silver to hedge against dollar devaluation. If there is a long-term bear market and a 50% correction,' he also recommends buying Palantir Technologies, Reddit, Nvidia, and Rocket Lab USA. 'These are the four most beautiful stock charts I've ever seen.'
Burns mentioned the importance of risk management, saying: 'The primary method is through position management. No matter what your trading system is, the size of your position will determine whether you can accumulate profits, retain them, or suffer devastation.'
Article reposted from: Jinshi Data