Listening to the Stock Market: What the Numbers REALLY Tell Us
In this revealing episode of G-Wiz Weekends, Emerald Fox joins Lynette Zang to explore a critical market signal: nearly 70 percent of stocks underperformed the S&P 500 in 2023. While headlines boast of record highs, Lynette explains how the numbers mask the reality beneath the surface and how the system is designed to benefit the few at the expense of the many.
Here is what you need to understand.
Market Gains Are Not What They Seem
A chart from Stansberry Research showed that only about 30 percent of stocks outperformed the S&P 500 last year. This may seem surprising, but according to Lynette, it is not unusual in a managed market.
Most of the gains over the past several years have come from a handful of massive tech companies like Apple, Amazon, and Microsoft. These giants have become the favorites of mutual funds and ETFs, which pour capital into the same few stocks.
This behavior, known as herding, pushes stock prices up and creates an illusion of overall market growth. But that illusion crumbles when the market turns.
How the Doom Loop Unfolds
When stocks are driven higher by borrowed money, companies can use that inflated equity to borrow even more. But when stock prices drop, they face margin calls. That means they must come up with more money or liquidate assets to meet their obligations.
These margin calls create what Lynette calls a doom loop:
- Stock prices fall
- Equity shrinks
- Assets are sold to meet margin
- Prices fall further
- The cycle repeats
Because the same top stocks are held across most funds and ETFs, losses ripple through the system. A sell-off in one place leads to sell-offs everywhere else.
Diversification Is an Illusion
Wall Street promotes diversification through a mix of stocks, bonds, ETFs, and mutual funds. But Lynette makes it clear that this is not real diversification. All of these products are based in fiat money. They are intangible, and they rely on the same weakening dollar.
Inflation is already showing you that the dollar’s purchasing power is falling. If it costs more to buy the same goods, that is the true erosion of value.
Markets may appear to reach record highs, but these are nominal highs. Lynette calls this “nominal confusion.” Just like Venezuela once had the best performing stock market in the world during a hyperinflationary collapse, inflated market gains do not equal real wealth.
A trillion dollars multiplied by zero purchasing power still equals zero.
Fiat Money Has Never Survived
No fiat currency in history has ever stood the test of time. That is why relying solely on the banking system, mutual funds, or even credit unions is not safe.
Even though credit unions are member-owned and tend to avoid risky derivatives, they still depend on the same large commercial banks. In a crisis, smaller institutions get absorbed. That happened in 2008, and it can happen again.
Lynette’s approach is simple:
- Keep only the necessary funds in the banking system
- Hold cash outside of banks
- Maintain physical assets that cannot be erased or frozen
You can always make a deposit. But when a bail-in comes, you may not be able to make a withdrawal.
Real Diversification for Real Security
The only way to achieve true diversification is to hold tangible assets outside the financial system.
Today, physical gold and silver are severely undervalued. Stocks, bonds, and real estate are overvalued and heavily leveraged. Central banks will continue targeting fiat assets for reflation. When the revaluation happens, gold and silver will rise.
Gold is essential for wealth preservation. Silver is powerful for everyday barter. Both are critical for anyone who wants to protect their financial future as the fiat system unravels.
Proper diversification is not shifting between fiat assets. It is moving from intangible to tangible.
Protect Your Wealth Today
If your wealth is tied to stocks, bonds, or cash alone, you are not protected. Now is the time to act.
Learn how to secure your assets with sound money strategies that include physical gold and silver.
Connect with Zang Enterprises today to discover how you can prepare for inflation, protect your wealth, and preserve your purchasing power.
Because believing the illusion does not protect you. Only truth and preparation will.
