“On the Holmes Front” with Frank Holmes
The mainstream media blasted President Donald Trump for saying that if Kamala Harris won the presidential election, there would be a “bloodbath”—but that’s exactly the conclusion of one of the foremost economic forecasters in America today.
The financial prodigy says all the signs point to inflation roaring through the U.S. economy—raising prices, stalling the economy, and eating away at responsible people’s hard-earned life savings.
All this economic devastation is set to begin the day after the election, he says.
This analysis comes from the keen eyes of Paul Tudor Jones, a Wall Street wizard with an estimated net worth of more than $8 billion, who shared his insights with our friends at Money Morning.
Voters of all political stripes rate inflation as their number-one issue in the 2024 election—and signs are already on the horizon that higher prices have sprung back to life.
The media have highlighted that one measure of inflation, the Personal Consumption Expeditures (PCE) price index, fell to 2.1 percent, which is near the Fed’s target of two percent annual inflation. But, as usual, thel;egacy financial press isn’t telling you the full story.
The Fed’s preferred measure of inflation, core PCE, rose 2.7 percent in September. That’s higher than the 2.6 percent experts had forecast and up 0.3 percent in just one month.
In all, PCE posted its highest rate since April.
Core PCE excludes housing and energy, which are volatile, and gives a deeper look at the underlying state of the economy…and it appears this economy is running back toward 2022.
Add to that the October jobs report, released Friday morning, which shows the economy added only 12,000 jobs in September. The Dow Jones estimated 100,000 new jobs.
Rising prices and fewer jobs pack a potent punch. “Imagine wanting 4 more years of this,” said one popular social media profile.
Imagine wanting 4 more years of this pic.twitter.com/wFSVD5AgRE
— End Wokeness (@EndWokeness) September 21, 2024
But then, core PCE and the jobs report are not the only signs of a slowing economy, because the evidence of a bear market doesn’t just show up in the short term; it’s also in long-term measures.
The report reveals that a measure of economic health—the iShares 20+ Year Treasury Bond ETF (TLT)—had been pulling upward during high interest rates…but over the last four weeks, it’s collapsed nine percent.
It’s a bad long-term sign…and two news events could make it worse, Paul Tudor Jones says.
One is the election of Kamala Harris. “The markets need to see a peaceful election process play out. Anything beyond that begins to throw the market into uncertainty mode, which will be bad for stocks and bonds, but good for Gold,” says the Money Morning report, written by Chris Johnson.
Then again, a Trump win might also touch off waves of left-wing violence that could destabilize market.s Shop owners barred and barricaded their stores in November 2020 out of fear enraged urban mobs would riot following a Donald Trump victory… and it could happen again.
“We are going to be broke” either way, warned Paul Tudor Jones.
That’s just one of the events: The Federal Reserve Board meets on election day and announces its decision about rate cuts the following day.
The Fed has already cut its key interest rate from a 20-plus-year high of 5.3% to 4.8% in September. It is committed to lower rates by 25 basis points at each of its meetings in November and December, and it says this will be followed by six more rate cuts: four in 2025 and two already envisioned to take place in 2026.
But if the economic pictures changes, the forecast changes. Higher inflation requires higher interest rates to bring prices back into line.
“This will cause the rally as we’ve known it for the last eleven months to change dramatically,” says the report.
This is the time to invest in hard commodities that will stand the test of inflation, it says.
“Paul Tudor Jones recommended that investors buy gold or Bitcoin to hedge the risks that another round of inflation and higher interest rates would deliver to stocks and bonds,”it states.
Gold has climbed from $1,716 in September 2022 to nearly $2,800 an ounce today—a 66 percent increase.
The price of gold nearly doubled over the last five years. It was $1,456 an ounce in November 2019, before the novel coronavirus arrived on U.S. shores with force from China and touched off the COVID-19 “global pandemic.”
KAMALA’S INFLATION TIME BOMB
Kamala's high-cost “net zero" energy policies projected to 2x electricity prices in just a few years in PA & other states.
These electricity price increases ALONE will cause inflation to 2x – and that’s without Kamala's other inflationary policies. pic.twitter.com/Fqhi1zc4bK
— Team Trump (Text TRUMP to 88022) (@TeamTrump) October 31, 2024
Even legacy Wall Street advisors agree: Gold is going higher. “Gold is forecast to climb higher than previously expected as central banks in emerging markets have ramped up purchases,” reported Goldman Sachs.
Ordinarily, high interest rates lower the price of gold—but not this time. Russia has invested heavily in gold, as President Vladimir Putin attempts to compensate for massive economic sanctions levied against his country since the outbreak of hostilities with Ukraine. Kamala Harris has been an outspoken advocate of punishing Moscow, and keeping the war going at all costs, while Donald Trump has said he will bring the war to an end on day one. A Kamala Harris victory would see these policies, which have raised gold prices, to continue another four years.
Everyone agrees gold is going to increase in value—but Paul Tudor Jones has revealed that, to truly benefit, you have to buy the right kind of gold.
“Don’t go to Costco or your local coin shop, open your brokerage account and consider the SPDR Gold Shares (GLD) as a long-term trade for gold,” says the report.
The report reveals plans for GLD to surge from its current price of $253 today to $350 by the end of 2025, a profit of almost 40 cents on the dollar.
For maximum benefit, Paul Tudor Jones suggests going long term. Buy the January 2026 Long-Term Equity Anticipation Securities (LEAPS), he suggests, to insure yourself against sudden surges (or drops) in price. For less than the price of four shares, the report says, you control 100 shares.
The report encourages everyone to do their homework before investing.
Voters also ought to research the potential economic devastation that four more years of Kamala Harris will usher in and vote accordingly.
Protect America the same way you protect your money.