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 – Introduction
1:20 – Capital Rotation Event
2:07 – Capital Rotation Charts
12:57 – Equities Vs. Gold
14:18 – Bitcoin Correlations
22:00 – Killing Narratives
24:40 – Ratio Analysis & Trends
28:34 – Gold Vs. Everything
32:24 – DXY Vs. CPI Chart
38:48 – A Technical Approach
44:18 – Public Debt Analysis
48:23 – Miners & Speculation
52:04 – Most Commodities?
54:08 – Risks – Tops/Bottoms
57:57 – Technicals & Analysis
1:04:53 – Entry Points & M.A.
1:10:09 – Uranium Miners
1:12:06 – Wrap Up
Guest Links:
Twitter: https://x.com/NorthStarCharts
Website: https://NorthStarBadCharts.com
YouTube: 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/badcharts1
Website: https://NorthStarBadCharts.com
YouTube: 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.
