In a recent podcast, Equity Management Academy trader and advisor, Patrick MontesDeOca said, “Since the highs in gold back in July, we have seen a surge of tremendous propaganda pertaining to the gold and silver markets. Almost every gold bug out there has come out with extreme videos” anticipating “ridiculously” high gold and silver prices. He said, “A great deal of fear has been pumped into the markets” and “People seem to have gotten onto the fear bandwagon instead of relying on real information to invest.”
Conceding that we are “in an economic crisis,” MontesDeOca warned that we “really have to take a look at this crisis as a tremendous opportunity.” Since 2008, when he resigned from the financial system as a broker and analyst and became independent, he said, “I am in a far, far greater position.” He found the change difficult, since after more than 30 years he had to conclude that much of what he believed was false. However, he concluded that “Unless you are part of the corrupt system, you will find it very difficult to do anything” effectively within the system.
MontesDeOca argued that “corruption has reached an extreme” since the 2008 collapse, which shattered the foundation of Western economics. Today, the rhetoric coming out of the Fed and low-to-negative interest rates are “completely ridiculous.” He has struggled to “Find some kind of a logic that will make sense out of what Central Banks and the Fed are doing,” but has found no such logic for their failed policies. The Fed and Central Banks have been pumping money into the system for years and the situation continues to deteriorate.
MontesDeOca concluded, “There seems to be a concerted effort for interest rates globally to go negative.” He argued that economies grow when investors make a small percentage on a business, investment or on savings. That small difference over time leads to a growing net worth for individuals.
Today, Central Banks and governments are making it so there is no return on savings. MontesDeOca said, “Central Banks and governments want the right to use your money for free to pay off their debts. Negative interest rates show that governments are completely broke. Their only way out is to pump more money into the system, but the system that is broken. No matter how much money they pump into it, it will not recover.”
“We are in a crisis situation,” MontesDeOca argued, “but be careful that you aren’t caught up in this panic. That is when you get your head cut off. You have to do your homework. Take your time to validate information and don’t act impulsively. Do your research before you decide to take action.” He warned that “The internet is full of propaganda and 95% of it is garbage.”
Looking for a rational, measured approach to investing? The goal of the Equity Management Academy is to provide a select group of investors with the tools and information to invest wisely and well for the long-term in these tough economic times. For more information about the Academy and Patrick MontesDeOca, please email support@ema2trade.com
