Blackrock's Rick Reider - Recession Warning (Patreon)

Rick Rieder CIO of BlackRock, claims the economy is in a recession, prompting them to invest heavily in gold and favor cash.

This is alarming for several reasons:

Recession Claim: Rieder's assertion that the economy is currently in a recession suggests significant economic downturn, which could lead to job losses, reduced consumer spending, and broader financial instability. If a firm like BlackRock believes this, we should listen.

NOTE I HAVE SAID FOR QUITE SOME TIME NOW, IN DAILY VIDEOS, WE ARE IN A RECESSION. Signs are everywhere. Tariff Tensions just accelerated it.

The gold price shown is $3,308.98, up 2.42% intraday and 42% year-to-date. Gold is often seen as a safe-haven asset during economic uncertainty.

Preference for Cash: BlackRock's shift to cash suggests they expect market volatility or further declines in other assets like stocks or bonds, as cash provides liquidity and safety in turbulent times. I still have over half of my cash to deploy and I will be more cautious but still use MSTR as my currency to stack more AI (TSLA and NVDA) at low prices.

DO NOT PANIC

Note while I admire Rick, he is often alarmist, he is also often wrong. In late 2023, Rick Rieder doubted the Fed would cut interest rates by March 2024, but the cuts came. He had some other calls re rates and macro that were off.

h./t Sanjay