Regular readers of our newsletter know that over the last several months we have repeatedly highlighted the fragility in the US economy, especially the contradictions between the official numbers and data gathered from other ‘real world’ sources. Accordingly, we have urged investors to be cautious about chasing high-flying names and instead focus on high-quality fixed income and gold. A couple of weeks ago, in our July 19th 2024 newsletter, we explicitly broadcast our expectation that markets are likely to correct sharply.

The events of the last couple of days have vindicated our stand.