In preview:
- The more money the government prints, the better these stocks perform.
- One of the most important companies you’ve never heard of just soared to an all-time high.
- More signals that the critical resources industry is full of opportunity right now.
The more money the government prints, the better these stocks perform
This morning’s review of our Global Trend Tracker shows it’s been tough to make money in most sectors lately.
Semiconductors, robotics, oil, bitcoin, uranium, space, drones, and China are all down over the past five trading sessions.
However, the gold mining sector remains strong. The fund we use to track gold miners – the VanEck Gold Miners ETF (GDX) – is up 5% over the past five sessions.
In 2003, I placed over half of my net worth into physical gold. Since making that bet, gold is up about 1,100%, far outperforming stocks. I haven’t sold one ounce along the way.
And now, all these years later, the best reason I can find to be bullish on gold is the same reason why I bought gold in the first place: Governments around the world are spending far more on taxpayer benefits and wars than they are collecting via tax revenues. They make up the difference by borrowing and printing money by the trainload. Every freshly printed unit of currency debases an existing one. This sends the nominal price of real money (gold) higher. Gold has spent the past 22 years constantly revaluing itself to accommodate for the huge increase in new currency units.
Here on the cusp of 2026, the problem is worse than ever. In America, millions of people are net tax recipients – meaning they receive more in benefits than they pay in taxes. No politician can win a major election by promising reduced spending. Too many people are now riding the gravy train. Democrat or Republican, it doesn’t matter. Campaigning on sensible spending will get you beaten like the Cleveland Browns.
The American government has taken on debts and unfunded obligations it cannot possibly repay with sound money. They can only be paid back with vast amounts of newly printed, debased money.
So, what stops the insanity? How can we get spending under control?
Sorry – bad news. Too many voters either work for the government or are net tax recipients. They flat out will not vote for someone who promises to cut benefits, handouts, and spending. This spending is a runaway train. We will only “get religion” after a financial market crisis forces us to get it. We will only change when a crisis forces us to change.
It’s like how most alcoholics won’t make a change until they’ve almost killed themselves in a car crash or something. It’s human nature to change only when a crisis forces us to change.
This is why I’ve stayed long gold for 22 years. It’s why I’m also long gold mining stocks now. Although they are up 181% over the past two years, they still have further to go.
I can’t know when a financial market crisis will force a change in America. Nobody knows. It could be over five years away. It could be 15 years away. But I own gold in case it’s two years away. And it doesn’t even need to be a big crisis. A medium-sized one could force change.
Stocks could soar, and the economy can grow for a long time before a crisis arrives. I’m bullish on the U.S., but also concerned about the future and the owner of insurance. And the trend remains up for gold stocks.
The more money the government prints, the more gold stocks rise
One of the most important companies you’ve never heard of just soared to an all-time high
Speaking of stocks and the economy growing, one of the most important companies you’ve never heard of – CRH (CRH) – just reached an important all-time high.
CRH is one of the world’s largest construction aggregates and building materials companies. This is the asphalt, gravel, and concrete business. CRH claims to be the largest provider of this type in North America. Chances are very good that you’ve driven a lot of miles on roads or spent time in buildings created from CRH materials. It’s a super-giant in the industry.
Over the past three months, I’ve frequently highlighted the strength in heavy equipment makers, automakers, steelmakers, and transportation firms as evidence that the economy is doing much better than the pessimists would have you believe. These industries make up the core of our economy.
So do concrete and asphalt companies like CRH.
Its fortunes rise and fall with our ability to finance and build highways, bridges, skyscrapers, homes, and offices. When the economy is pouring lots of concrete, it’s a bullish signal.
CRH’s earnings and revenue are growing at solid rates… so much that shares are up 95% over the past two years and just reached new all-time highs. It’s yet another sign that despite some well-publicized problems, the global economy is still generating growth.
CRH’s bull market: It’s not a bearish sign
Market Notes
- European banking giant UBS (UBS) reached a new all-time high today.
- Airline leaders Southwest Airlines (LUV), Delta Airlines (DAL), and American Airlines (AAL) reached new 6-month highs today. Rising airline stocks are bullish economic signals.
- Critical resource investment firm Sprott (SII) reached a new all-time high today. It’s yet another sign we are in a critical resources bull market.
- The abrdn Physical Platinum Shares ETF (PPLT) reached a new all-time high today. It’s another byproduct of the bull market in critical resources.
