Wondering what Jim Rickards Predictions for 2023 are?
In a presentation he recently featured in called “Blood-Curdling Scream,” Jim Rickards made a bold prediction concerning how the stock market will pan out.
Considered one of the world’s leading economists, Rickards revealed that we may witness one of the biggest market corrections of our lifetimes. He went as far as literally say that “the markets just let out a blood-curdling scream” and that many Americans will suffer.
In this piece, we take a closer look at what he revealed in the interview and what he proposes you do to prepare for the next few months.
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Jim Rickards Predictions 2023
Before, we take a look at Jim’s predictions, we should acknowledge that the market has been going through a period of regression in 2022.
Doug Hill mentions this when he talks about how banks have been warning their clients about this:
“Bank of America has started warning its internal clients that massive a “recession shock” could rock the markets in just the next few weeks, writing that:
And they even went as far to say that “U.S. economy is deteriorating fast”…
Other banks like Morgan Stanley, Goldman Sachs, and J.P. Morgan have started issuing similar warnings to their internal clients and high value investors.
In fact, Deutsche Bank just became one of the first banks to publicly admit that the U.S. is heading for a major recession, and has warned its investors to expect a correction of at least 20%.”
The undeniable fact is that the global economy has been hit by various factors and it is not doing well and the stock market has been trending downwards.
Instruments that were often thought of as hedges against a volatile market are losing their shine too.
Blue Chip Tech Stocks:
With all these investments falling like that, Jim Rickards has assessed the situation and he has his thoughts on this. Let’s find out what where he stands on this.
Jim Rickards’ Analysis of the Market and Economy
First, Jim Rickards believes that by whatever measure, the capital markets right now are in a massive bubble. To demonstrate this, he shows us a chart of the market cap to GDP ratio:
He says that the market cap to GDP ratio is a good indicator of how much money has been invested in the stock market relative to the size of the economy.
He says that it is multi-billionaire Warren Buffet’s favorite indicator for predicting a market crash.
Jim Rickards says that at the peak of the Dot Com Bubble, the chart was at its highest level and Buffet predicted a crash; he wound up being right. The market did not recover for 15 years.
The indicator today is 113% higher than at the height of the Dot Com Bubble, which Jim interprets as indicating that there is more easy money flowing into the U.S. stock market than at any other point in history. Once this is taken away, the market will crash in a bigger way than the tech bubble.
Another chart he pulls out is the margin debt chart:
The margin debt chart shows the amount of money investors borrow to invest in the stock market.
The chart shows that just before the 2000 Crash, the margin debt went up to almost $500 billion as people borrowed to invest in stocks. Debt to net worth for most people has been rising.
Right before the 2008 financial crisis, the debt went up again as people leveraged up their accounts.
Jim says that margin debt levels are at their highest today with almost a trillion dollars of borrowed money floating around in the stock market, twice the levels they were before the 2008 financial crisis when the market went down by almost 55% and this excessive debt is cause for concern. They are also higher than they were in the Trade war.
Therefore, he predicts that the ensuing crash could be one of the fastest and most violent corrections in history.
The final chart he shows is the Shiller P/E ratio:
Jim says that the Shiller P/E Ratio is a bubble indicator developed by Nobel Prize-winning economist Robert Shiller.
It measures how expensive stocks are compared to their earnings. From reading it, he says that it has spiked to its highest points since the Great Depression.
According to him, when the stock market crash happens, it will be different from the ones that we’ve seen before because this time, the government and the Federal Reserve aren’t going to save the day.
That’s because over the past few decades, to mitigate a crisis of the economy or financial system, the Fed had been increasing money supply and lowering interest rates (there were points when we saw negative interest rates).
He thinks that the stock market won’t shoot back up like it did after the Coronavirus crash or the 2008 financial crisis and could stay depressed for years or even decades. This is because those measures we just mentioned won’t work this time.
Why does Jim Rickards say that they won’t work this time?
He says that over the last few decades, no matter how much money the Fed has printed and injected into the U.S. financial system until last year, there hasn’t been massive inflation of the levels we are seeing today.
He states that before last year, inflation was averaging around 2% and had been declining since the 90’s.
But this time inflation has spiked because with all the money that is being added into the economy, to stimulate consumer spending, the money is not making it to the consumer.
It’s being diverted into the bond market, the stock market, and the U.S. banking system.
Therefore, for a few years now, instead of flowing into the economy and causing inflation, the newly printed money had been flowing into assets and creating huge bubbles in nearly every sector of the economy.
That’s because many people have known that with the easy money the Fed is throwing at the economy, they can have a chance to get rich.
He points out that it was recently reported that investors put more money in stocks in a single 5-month period, than in the previous 12 years combined.
With interest rates already at one of their lowest points in history, Jim says that the Fed is not going to curb inflation by raising them because every time it has tried to raise them, what has followed has been a massive market crash.
He says that the Fed is in a tough situation because it has to choose between raising interest rates to stop inflation and keeping the bubble going.
With either choice, he says that people are going to suffer.
Why the government and the Fed are helpless
He says that those measures won’t work because the current turmoil is caused by supply shocks.
“It’s a lot more than just oil.
Because of the war in Ukraine, and the fallout from the coronavirus lockdowns, we are seeing massive supply shocks nearly everywhere we look…
Everything from food, to gas, to electricity are all in short supply.
Videos are showing empty shelves across the U.S.”
He says that the last time this happened was in the 1970’s and back then, even the stock market was not a useful hedge.
On this chart, the Dow Jones fell by nearly 74% after 1965 and didn’t recover for nearly 30 years.
Therefore, as prices were going up, the values of people’s retirement accounts plummeted.
Another reason Jim Rickards says the government and the Fed cannot help is that raising rates will only cause harm rather than good.
He gives the example of Japan, which went through this in the nineties:
In the eighties, Japan was in a nearly identical situation where they had a massive asset bubble through low rates and easy money.
Everything looked okay because their real-estate and the stock markets were hitting all-time highs, just like America today.
Then in 1989 when the Central Bank decided to raise the rates to try and slowly deflate the speculative bubble, within months the stock bubble burst and the Nikkei fell by over 60% in just a few short years leading to what is often called “the lost decade.”
Therefore, Jim warns that if this were to happen, the market would tumble just like the Japanese market did back then.
How to Protect Yourself During the Crash
Jim Rickards believes that a market crash is coming hard and fast and the time to prepare for it is now.
He says that if he were to pick a date when he thinks the whole thing will unravel, it would be in the middle of June because the entire world right is caught in limbo now because people are wondering how the Fed will act.
He pinpointed that date because that’s when the Fed will meet and decide whether or not to continue to raise rates.
He says that if they raise them by anything more than a quarter of a percent, which looks more likely by the day, the markets could see a major sell-off the next day.
Here are some of the measures he is proposing investors take to deal with a potential fallout
He is recommending that you make sure you have enough cash on hand to cover at least 3-6 months’ worth of expenses.
Although that sounds counterintuitive with the inflation eroding the value of cash, he says that most people will get wiped out in the early stages of the crisis as the market crashes when they lose their jobs, their homes, and watch their retirement accounts shrink.
Therefore, he says that having a little cash on hand will ensure that you are well insulated against the coming storm.
Part of his justification is that in 2008, the market took time to recover:
Jim Rickards says that investors who kept their money in the market had to wait for long for it to recover while those that went to cash and bought even just a run of the mill index fund anywhere close to the bottom of the market could have doubled their money in the same time frame.
To help out with this, he also recommends moving a large part of your portfolio to cash because having liquidity will limit your downside during a crash and give you plenty of ammunition to enter back into the market at rock bottom prices once the bloodbath is over.
This is in line with the mantra that the best time to buy stocks is when there is “blood in the streets”. A mantra shared by Nick Giambruno.
The Market Crash Survival Guide…Instructions for the Decades of Devastation That Lie Ahead
Jim Rickards has written a special report on how to survive the market in case of a recession.
In the bloody Wednesday survival guide, he will provide you with the facts and figures he talks about along with a few special investment opportunities he will cover.
Some of the things he will cover inside include:
- An investment he thinks you need to start making.
- Specific portfolio allocations for the coming correction.
- 5 unique investments that could give you massive returns during a market downturn.
Jim has made it available for immediate download to anybody who signs up for his newsletter, Strategic Intelligence.
Put Up to 10% of Your Portfolio in World’s Most Indestructible Asset: Gold
James Rickards says that there is one asset that performs surprisingly well during times of crisis: Gold. He even refers to it as “the single most important safe haven for what lies ahead.” He is predicting that it could reach $14,000 per ounce.
He says that Ray Dalio, one of the best hedge fund managers and someone who has been warning about a correction, has invested more than $400 million.
Other billionaire investors like Paul Singer, Paul Tudor Jones, “Bond King” Jeffery Gundlach, and Lord Jacob Rothschild have been buying too. Investment analysts like Robert Kiyosaki and Dan Ferris have also prescribed gold.
One reason he wants you to invest in gold is as an inflation hedge because it does well during periods of high inflation compared to the US Dollar. For examples, in the 1970s, it went up over 2,269% in a decade.
Jim clarifies that he doesn’t want you to own gold just for the sake of it. He wants you to read his book, The New Case for Gold, which he has written detailing how he wants you to invest in gold.
He explains things like:
- The secret lever the government still has left to pull during the next crisis and why it would send gold to $14,000 overnight.
- The REAL reason Russia and China have been buying up gold
- The 5 secrets of the worldwide gold manipulators and how to take advantage of their schemes to profit
- The U.S. government’s secret scheme for removing physical gold from circulation.
- The three countries where you can easily and safely store some of your gold outside of U.S. borders. He also talks about a special depository in Texas that is protected by the Tenth amendment where you can vault your gold.
- A new “shadow gold standard” that is being used by world leaders
- His favorite way to invest in gold mining stocks.
The book is already in the shops for almost $26 but he will send it to you for free if you sign up for the Strategic Intelligence newsletter.
As part of the deal, he will also send you an additional hidden chapter of the book that’s not available in any print version, and has never been released anywhere before.
This additional chapter has details like:
- Jim’s #1 Gold Play for 2022 – Rickards believes that there is a special development happening in the Arctic and he explains exactly what this is and how to stake your claim.
- The World’s Last Pure Silver Mine – He shares details of a little known silver mine that trades for less than $4 a share that may be sitting on a large deposit of pure silver.
- Secret Island Silver – This involves special silver coin from a secret mint located off the coast of the Cook Islands that has unique properties that makes it more valuable.
Other investments people have considered are land, digital currency, and fine art.
In addition to sending you his book with its bonus chapter, he will also send you Goldbacks.
Goldbacks are thinly printed sheets of real gold that are covered in a nearly indestructible protective polymer.
They feel almost like real cash and they have protective security marks printed just like a U.S. $100 bill.
They are available in multiple denominations ranging from 1/1000 troy ounce all the way to 1/20th of a troy ounce.
They solve one of the biggest problems with storing physical gold because they allow you to trade in much smaller denominations of gold as easily as you would with dollar bills.
That’s because, during a time of crisis it’s nearly impossible to use physical gold for barter.
He says that they are already being used as currency in places like Utah, Nevada, and New Hampshire and you can spend them anywhere in the United States.
On top of that, they’ve been soaring in value at twice the rate of gold.
Therefore, if gold rises to $14,000 an oz, they could go up even higher than the spot price of regular gold.
How to 10X Your Money from the Coming Crash
Besides cash and gold, James Rickards has another way for people to survive if not thrive during a recession.
He claims to have a special type of crash protection play that few investors even realize exists.
He says that it is similar to the secret that Joseph Kennedy, the father of John F. Kennedy used to launch the Kennedy family fortune in the middle of the 1929 crash and almost identical to how billionaire Mark Cuban protected his investments and profited more than 1.4 billion dollars during the Dot Com crisis.
He says that he has found a way that allows even average investors to get in on this opportunity without having to short stocks or do anything complex.
The 5 “Anti-Meme” Stocks Set to Soar When the Bubble Bursts
Jim Rickards has identified companies that have a secret ingredient that has them perform well even during a recession.
With these companies, they have a high return on invested capital thus they can thrive and expand during a crisis.
Therefore, rather than going for meme stocks that have bad fundamentals, he wants you to go for well-run companies that he calls “Anti-Meme stocks”.
He has identified five such companies that have the potential for high returns on invested capital that he thinks are likely to soar in the days and months ahead.
Who is Jim Rickards?
James Rickards (or Jim) is an investment analyst that considers himself an asymmetric financial threat expert.
Jim Rickards is an American lawyer, economist, investment banker, speaker, media commentator, and New York Times bestselling author on matters of finance and precious metals. He is also a contributor to The Financial Times, Evening Standard, and other publications.
James Rickards has served as an advisor to the CIA, the Pentagon, the Department of Defense and even the White House. He was one of the people that helped the Nixon Administration craft the Petro Dollar Accord in the 70’s that strengthened the US Dollar’s status as the world’s reserve currency.
He also worked for the Reagan Administration as it was negotiating the end of the Iranian Hostage Crisis in the 80’s and has been called upon by various intelligence communities to build systems for tracking terrorists through the financial markets and bank accounts.
He has also helped government agencies assess threats of overseas companies that wanted to do business in the country and even ran economic wargames to stress test the U.S. financial system against possible attacks.
In 1998, he was called upon to work with the Federal Reserve after the hedge fund Long-Term Capital Management was in turmoil and threatened to take down the entire U.S. financial system. Due to his efforts, he was the subject of a book called When Genius Failed.
Jim wrote a book called Aftermath in 2019 where he warns that most of the issues that took place in 2008 were never fully resolved.
Currency Wars: The Making of the Next Global Crisis is another book he published. In it, he argued that currency wars are a national security concern. He maintained that the country faced serious threats to its national security, from clandestine gold purchases by China
He warned that a global pandemic could be the cause of the next financial crisis and that a crisis of this proportion would happen within the next few years. Then four months later, coronavirus broke out.
Strategic Intelligence Review
Strategic Intelligence is a research service that Jim Rickards edits and publishes via Paradigm Press, an independent financial service that publishes financial research targeting Main Street investors.
Jim claims that his mission with this research service is to help his readers profit from and avoid some of the most “unthinkable” events and financial crises on the horizon; black swan events.
A Black Swan Event is an event that comes as a surprise, has a major effect, and is inappropriately rationalized after the fact with the benefit of hindsight. A good example of this is the coronavirus pandemic.
Jim says that he will help you navigate the murky waters of the world of investing because over the course of more than 40 years, he has had a long career working at the highest levels of the finance and intelligence communities.
He says that during that period, he has developed a vast network of connections and market insights that have allowed him to stay one step ahead of some of the biggest economic events, such as the ones we have discussed.
What you get when you join Strategic Intelligence
If you sign up for the Strategic Intelligence newsletter, among other things, you will get benefits like:
A private access link to live intelligence sessions
You get a link to an exclusive live intelligence session with him once every month. This is where you get on a call with him and a group of other members as he gives you his analysis and updates you on exactly what’s happening in the markets.
Each session has a moderator and you can submit questions for them to answer. However, Rickards is not authorized to give personalized investment advice, which means that you only get general advice. This means that there is no personalized content.
He insists that this is as close as you’ll come to getting your own personal briefing from the contacts he has in the intelligence community.
Access to the model portfolio
Rickards says that the model portfolio is updated in real time.
He says that a majority of the investments in the portfolio are more speculative in nature.
He also insists that by getting access to the model portfolio, you get to see dozens of opportunities that his readers are already taking advantage of. These are opportunities that he doesn’t cover in his presentations.
Strategic Intelligence Pricing
Strategic Intelligence has a subscription fee of $49 per year.
If you sign up for Strategic Intelligence when the offer is valid, you will lock in that low rate from year to year as long as you choose to be a member of Strategic Intelligence.
The other two subscription rates are Platinum for $79 per year with a bonus report called Twenty Stocks To Dump and Five to Own and Silver Level for $129 per year.
The Strategic Intelligence Refund Policy
Strategic Intelligence comes with a 6-month refund policy. Jim even mentions it in the presentation when he says:
“It works exactly how it sounds. If at any time during the first 6 months of service, if you don’t feel like you’re getting the best financial research available…
Simply call my team and we will give you a complete refund, no question asked.
You can even keep all of the reports, the dossier, the goldback, everything it’s all yours.”
Although he says that, you should always confirm that the refund policy has those terms because those may change without warning. To be on the safe side, take it upon yourself to read the terms and conditions page.
Closing Remarks on Jim Rickards’ Predictions 2023
Jim Rickards is an investment analyst that is considered by some, one of the world’s greatest financial minds.
He appears to be agreeing with other parties that the bear market we have been witnessing is not over. In fact, he says that it will get worse and that we could be on the cusp of one of the biggest financial crises in history, if not the biggest.
In his presentation, he reveals the reason why major banks like Bank of America and Deutsche Bank are warning their internal clients of massive “recession shock” that could send the Dow plummeting by 80% or more in the coming weeks. And that’s because of inflation and rising interest rates.
He insists that despite their best efforts, the government and the federal reserve will be helpless to stop a recession and the best way to survive is to find investments that do well in such a climate.
One of them is by investing in gold, which he refers to as “the surprising investment” that billionaires like Ray Dalio, Stanley Druckenmiller, and even Lord Jacob Rothschild are flocking to. Another is by investing in five stocks that have solid fundamentals that will help protect your investment even when the stock market plunges.
Guys like Jim Rickards believe that the mainstream media today is often clueless and you are better off doing your research and following guidelines by experts like him. Only time will tell whether he was right about the market or way off the mark.
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David Fortune has been the editor NoBSIMReviews.com since 2019. He is an expert at writing content on stock advisory services, side hustles, reviewing online business opportunities and many more topics. You can learn more about David on our about us page.