The UNTHINKABLE is about to happen to GOLD (& Why Cuba Is Next After Iran)

Summary

In this video, Felix Breen delves into the importance of understanding market patterns, especially in times of geopolitical turmoil. He highlights the historical correlation between gold, oil, and major crises, emphasizing that charts, not news, provide the best guidance for investors. Breen outlines the key sectors to focus on during market disruptions, including gold, energy, defense, and utilities. He stresses the significance of following money flows, maintaining discipline, and avoiding emotional decisions. By recognizing the four-phase market recovery process, investors can make informed decisions, stay patient, and potentially profit from volatility.

Takeaways

• 😀 Gold has recently exhibited a pattern not seen since 1979, and historical trends suggest that a significant move could be coming.
• 😀 Social media is divided on the future of gold—some predict a moonshot, while others warn of a bubble. The key advice is to follow the charts, not the noise.
• 😀 The most important strategy is to focus on the money flows, not the news. Gold ETFs started seeing a major influx before mainstream media caught on.
• 😀 Understanding market patterns, such as the 'heartbeat' pattern, is crucial. This pattern often precedes big breakouts in gold and gold miners.
• 😀 The divergence between paper gold (like COMEX) and physical gold is growing, signaling potential instability in the market.
• 😀 Large institutions, like Goldman Sachs and JP Morgan, quietly buy assets without broadcasting it to the public, which is an example of the 'sell your book' tactic.
• 😀 Having a solid plan and knowing when to sell is crucial. Many retail investors fail because they don't have rules for taking profits or cutting losses.
• 😀 Past geopolitical events, like the 1973 oil embargo or the Iran Revolution, show that oil supply shocks lead to significant gold price surges.
• 😀 The current situation with oil, particularly the potential disruption in the Strait of Hormuz, could lead to another significant oil shock and gold surge.
• 😀 Cuba's ongoing fuel crisis could become the next flashpoint in geopolitics, with potential ramifications for oil markets and global trade.
• 😀 The key to navigating market volatility is to ignore predictions and focus on historical patterns. Winners follow rules, stay patient, and follow the money, not the news.

Q & A

What is the key framework that Felix Breen uses to make investment decisions?

Felix Breen uses a framework that focuses on analyzing charts and following money flows rather than relying on news or predictions. He advises investors to watch the charts and observe the behavior of institutional money, which gives a clearer picture of market movements.

Why does Felix suggest ignoring news when making investment decisions?

Felix argues that news is designed to attract clicks and often causes emotional reactions that distract investors from making rational decisions. News typically reports on past events, while charts provide a clearer signal of future trends and money movements.

What role do 'gurus' play in the decision-making process, according to Felix?

Felix warns against relying on financial 'gurus' or influencers, as they may mislead investors. Instead, he emphasizes the importance of analyzing data and charts directly, which provides a more accurate reflection of market behavior.

How does institutional money influence the market, and how can individual investors track it?

Institutional money, such as that from large banks or hedge funds, tends to move in a quieter, more consistent manner. Individual investors can track institutional flows through data on gold ETFs, silver stress indices, and other market indicators rather than waiting for mainstream news to report on it.

What is the relationship between oil supply shocks and gold prices?

Felix explains that historically, oil supply shocks—such as those caused by geopolitical events or crises—tend to lead to significant increases in gold prices. This pattern has been observed in events like the 1979 Iranian revolution and the Gulf War in 1991.

Why does Felix emphasize learning to sell stocks instead of just buying them?

Felix believes that selling is where investors realize their profits. He emphasizes the importance of having clear rules for when to sell, as it helps protect capital and lock in gains. Many retail investors struggle because they lack a defined exit strategy.

What historical events does Felix reference to demonstrate the connection between oil and geopolitical power?

Felix references World War II, the 1973 oil embargo, and the 1979 Iranian revolution, highlighting how control over oil has historically been crucial in determining the outcomes of major conflicts. He argues that understanding oil dynamics is key to predicting economic and geopolitical trends.

What does Felix suggest could be the next geopolitical flashpoint after Iran?

Felix suggests that Cuba could be the next flashpoint due to its strategic position near U.S. waters and its reliance on Venezuelan oil. He notes that disruptions in oil flows in this region could significantly impact global markets.

What are the four phases of market recovery during a crisis that Felix outlines?

Felix describes a four-phase market recovery pattern: Phase 1 (Shock), where panic sets in and people sell; Phase 2 (Absorption), when the market stabilizes but retail investors continue to panic; Phase 3 (Recovery), where the market starts to rise again and growth stocks begin to perform; and Phase 4 (Outperformance), where the market hits new highs after the crisis subsides.

How does Felix view the role of defense and utility stocks during market crises?

Felix sees defense and utility stocks as safe haven investments during periods of crisis. Defense stocks tend to perform well due to consistent government spending, while utilities remain stable because they provide essential services and often offer dividends.