Stocks And Precious Metals Charts - It Will Happen Again

By Jesse of Jesse's Cafe Americain

Monday, January 12, 2026 5:43 PM EST

person using MacBook Pro on table

Image Source: Unsplash

The markets plunged over night. Trump shocked the financial world by invoking a clumsy criminal probe of the Fed chairman Jerome Powell, a poorly disguised attempt to co-opt the decision making of the Federal Reserve. A number of government organizations have already been corrupted. His people are feeling unstoppable.

This too will pass. But a significant amount of damage is being done to innocent people. And there is a corrosive moral hazard that remains if lawlessness goes unrecognized and unpunished. It will happen again.

There will be a stock option expiration this Friday.

But the mispriced risks of geopolitical and economic disruptions are profound, and building.

Stocks are being supported by Bessent and the Exchange Stabilization Fund. It couldn't be more obvious.

Why do you think Warren Buffet, the value investor, is sitting on a record amount of cash, having eliminated much of the fund's exposure to counterparty risk.

You saw what happened when the fundamentals of a market, the silver market for example, are stifled over time by a determined manipulation. It breaks out explosively.

The same thing is going to happen with stock market prices, and perhaps bond prices. When the pressures build up sufficiently to overwhelm the market rigging, the risk markets will crater.

You may not believe it, but you probably didn't believe in the manipulation of the precious metals either.

Have a pleasant evening.

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