Welcome to the “Recovery Day” edition of the Friday mailbag. We hope you had a hearty and happy Thanksgiving.
In this week’s edition, one of our biggest fans isn’t happy with our essay entitled “Google Wants to Make the Internet a ‘Safe Space.’” And Daily Cut editor Chris Lowe responds.
But before we get to that, one Legacy reader claims to have uncovered the real reason for the recent drop in cannabis stock prices…
Reader comment: I’m sorry y’all, I am surely the reason for the latest drop in market prices; it happens every time shortly after I invest in anything and last week I’ve gotten back in with two pot stocks! I suggest you bail out of investments immediately, for this time I guess I’ve just brought on the crash everybody is afraid of…
– Robert T. (Legacy Research member)
And now for that unhappy reader…
Reader comment: With all due respect, while I completely agree with your aspirations and your guidance to help the little guys like me create financial abundance, I think this piece is dangerously misdirected.
Free speech, like free markets, works specifically BECAUSE we agree on social limits. If you want a totally free market, try Somalia. If you want totally free speech, then you’ll have 9/11 bombers planning their raids, learning how to make weapons of mass destruction openly, and advertising for porn sites in elementary schools.
We NEED appropriate limits on the internet, to ensure that we CAN enjoy free speech, within the social limits of harmlessness, safely, and positive intent. Of course, it is difficult to determine and regulate these limits, but that’s why we need civil public discourse.
I respectfully request that you publish a retraction, a correction, or at least an explanation, to specify why and how you’re not advocating for the use of free speech on the internet to plan and implement violence. Thanks for all your wonderful financial advice – a great resource, overall!
– Paul S. (Legacy Research member)
Chris’ answer: Freedom of speech is the freedom that protects all other freedoms. So you’re right to say that “regulation” of free speech is difficult.
Let’s take Facebook as an example, as it’s one of the busiest censors out there. The “regulator” in this case is a highly secretive 34-year-old computer programmer called Mark Zuckerberg.
His approach to censorship is, frankly, bizarre.
He barely lifted a finger to stop Facebook and its subsidiary WhatsApp from being used to incite violence and rile up lynch mobs that have carried out killings in India, Sri Lanka, and Myanmar. Facebook has also insisted on leaving videos showing children being abused on its platform.
Meanwhile, the company has been quick to censor ads featuring cryptocurrencies, trans models, drag performers, childbirth and breast-feeding images, and photos of police brutality across the U.S.
The Zuck, as we’ve been telling you, also blacklisted 800 independent media organizations – many of which had either a libertarian or anti-establishment focus. But Facebook took it even further than that…
One of the many pages it banned was “Right Wing News,” a page administrated by severely injured, triple-amputee Iraqi war veteran Brian Kolfage. Facebook also shut down Kolfage’s business page, “Military Grade Coffee,” which donates 10% of its profits to veterans’ groups. How does selling coffee threaten anyone?
That so many people either don’t know what’s going on… or actively support the stifling of these ideas… is dangerous.
As we’ve seen over the last century, once censorship like this takes hold, all other freedoms are at risk.
Moving on… we’ve got a good question about gold. So we asked two of our Legacy Research experts – Strategic Investor editor E.B. Tucker and International Speculator editor Dave Forest – for some insight…
Reader question: Just one quick question today, why does it seem that gold is following the stock market up and down daily?
– Randy W. (Legacy Research member)
E.B.’s answer: In my experience, gold is a leading indicator for trouble in the broad stock market.
In 2008, gold broke $1,000/oz in March before falling nearly 20% in the summer, well ahead of the historic stock market decline.
This year, gold fell hard in August, roughly 6-8 weeks before the S&P hit its September 20 high.
While gold is a great indicator of trouble ahead, it also recovers faster than the stock market after a decline. That was the case in 2009 when it went on a 30-month epic run to its all-time high of $1,925.
I expect we’ll see the same after this market rout passes.
That’s my take.
Dave’s answer: I agree with E.B…
Gold mining stocks, especially big miners like Randgold Resources (GOLD), are even more exposed than the physical metal during rough markets.
When things look bad, people sell everything they can. And the big, liquid companies are quick to tumble.
Dave, our resident commodities expert, was also on hand to answer a reader question about natural gas…
Reader question: Natural gas is in a parabolic move. Seems to be a “bit” overbought. I guess if the lower 48 was going into the next ice age (soon, but not yet), I might jump on board the mania. Seems like a possible contrarian position?
– D. W. (Legacy Research member)
Dave’s answer: I just returned from Hong Kong.
After meeting with some of the world’s largest gold companies and several significant investment groups, it looks to me as if a tidal wave of money is ready to wash across the resource sector. And one important area where Chinese money is already hitting the market is the liquefied natural gas (LNG) sector.
Last week, China’s ENN Energy Holdings agreed to take over Toshiba Corp’s U.S. LNG assets. This is a critical point for a number of reasons. Most importantly, it shows that Chinese companies are not backing off the U.S. LNG sector, despite the recent Trump-imposed sanctions.
Simply put, China needs gas – and it can’t afford to cut off a major supplier like America.
China is still investing in U.S. LNG – and so is the rest of the world. And that’s creating a “dash for gas.”
Before we go, we want to share just a few of the emails we received from your fellow readers in response to Teeka Tiwari’s crypto mea culpa in last week’s Friday mailbag.
Reader comment: My thanks to Teeka for addressing the complaint over his price prediction for bitcoin by the end of the year. This was a big concern I had, but I feel reassured by his upfront admission of inaccuracy (don’t hear those much in society now), and by his defense of his decision-making process.
– Andrew H. (Legacy Research member)
Reader comment: Please pass along my accolades to Teeka. I think he’s doing a really excellent job guiding us through the volatility and providing his extremely valuable insights, building on his 30-plus years of experience!
I also very much like his honesty, sense of humor, and positive outlook.
– Michiel S. (Legacy Research member)
Reader comment: Big T owes no apology. I came into the crypto space with my eyes wide open. I was expecting a wild ride. Plus, I only invested as much as I could afford to lose.
My gut tells me Big T is correct and he just mistimed the market. Let’s see where the space is at in another year.
– Gary E. (Legacy Research member)
Regards,
James Wells
Director
P.S. One last thing before you go… In these pages, we’ve talked a lot about last month’s Legacy Investment Summit in Bermuda… and how Bill Bonner, Doug Casey, and Mark Ford gave us some of the greatest moments of the two-day event.
What we didn’t tell you is that they also got together afterward to discuss a few ideas that weren’t ready to be shared… yet.
But on November 28, they’ll release the video of what was said in that closed-door meeting. And you’re invited to be one of the first to see it. Just follow this link to get all the details.