Nothing kills capital market prices like stagflation.

Choose your poison. I am afraid that central bankers must take action now, which will be to pull liquidity from the markets.

My crystal ball is telling me that the equity bear market decline will now pick up steam. That's good because I have been well positioned for it. I have been watching prices come to me.

I don't know where the present inflation situation leaves precious metals, but I don't have a good feeling right now because I am long. I fear that the central bank hawks will be running wild. I therefore think the precious metal miners are likely to pull back further. Ouch!

I will have to watch the eggs in this basket very closely. As you know, the best of the precious metals companies are making good profits at $570 gold, and they will make it at $500 gold. But as the margins narrow, share prices will drop. This will be a good time to select the best quality miners for the rally later in the summer that I expect to occur.

As to my mail this morning, I am a bit overwhelmed. I just spent three hours reading (and not writing). But I am so thankful that people from all over the world have contacted me regarding material in the blog they think would be good for a book.

Thank you.