As I am writing this, the DJIA is sitting at just above 50,000. The S&P is sitting just shy of 7000 and the Nasdaq is a little over 25,000. Real Estate, while showing signs of a serious repricing soon, is also at or near all-time highs in most places.

While those who own these assets are basking in the glory of rising prices those who do not hold these assets are getting crushed. The barrier to entry into most of these “markets” is being constantly ratcheted up. This rewards those with assets and punishes those trying to gain access to those assets.

We often hear about income inequality. Right now, income inequality is at an all-time record. According to USDebtclock.org, the top 1% of households have an average net worth of over $20 million. The bottom 50% of households have a NEGATIVE net worth of MINUS 35,372. A lot of the negative net worth is caused by debts for cars, homes, student loan debt, credit card debt, etc. With all of this outstanding debt (Pledge of future earnings) saving and investing becomes harder and harder as prices rise.

It is extremely telling when ½ of our population has more liabilities than assets.

One of the main reasons for all that I have just laid out is the liquidation of the value of the dollar. Trillions in new debt has been funded by trillions in new currency units. New “money” and debt have been conjured up to fund wars, pay social security and Medicare, pay veterans benefits, pay interest on existing bonds, retire maturing or bonds sold by bondholders and to fund current spending which is reported to be $2 TRILLION in deficit for fiscal 2026 that they admit to- likely FAR higher since many of the things we “print money” to fund are not added into the “official” numbers as they are off the books.

In addition to liquidating the value of the dollar it pushes prices higher on assets even if the underlying value has not increased or possibly even decreased.

The reason that this is so important is to realize that while the financial game shows are celebrating higher PRICES, the underlying economy which produces real VALUE is collapsing at an accelerating pace.

I have been saying that unemployment is becoming a MAJOR problem. Many may say that the employment “numbers” today dispute that. That is what they would like you to believe but consider:

· The “numbers” are a guess. Last year’s numbers were reduced by over 800,000 jobs. This revision tells us that less than 15,000 jobs were created per month in 2025. In addition, the 130,000 jobs in the latest report- according to Zero hedge, if it were not for “seasonal adjustments” the unadjusted number would be MINUS 2.649 MILLION. That is QUITE the adjustment.

· Supposedly, the unemployment rate is 4.5%. This, Jerome Powell calls “full employment.” What a joke! Certainly, he is aware that over 103 million working aged people (in a country with 330 million) are not counted in the “official numbers”. In fact, the USDebtclock.org pins the number of taxpayers at LESS THAN 33% of the population. Let THAT sink in. There are a lot more people in the cart than those pulling it.

· Companies are announcing layoffs at record rates and somehow, we should believe that the job market is strong. It is weakening and the weakness is accelerating.

With massive debt loads and many living paycheck to paycheck the future looks bleak for many who are trying to get ahead.

Remember that even those dollar bills you have in your pocket are not assets, but a liability owed back to the Federal Reserve. Federal Reserve Note.

In terms of US dollars your stocks have done well. What if you measured your “gains” in the “market” in real money- GOLD? This is according to Bloomberg from 2020-2025.

· In Dollars, the S&P is up 15% annually in the last 5 years. Measured in gold you are DOWN about 4% per year.

· In dollars, the median existing home price is up about 7.5% per year. In gold, the price has FALLEN by 10% annually.

· US aggregate bond index is up about 1.5% per year in dollars and MINUS 15% annually when measured in gold.

You see, most of your “gains” are nothing more than the dollar losing its value. Keep in mind that all stops are being taken out to keep stocks, bonds and real estate propped up and the price of gold down to maintain the illusion of a strong dollar. A trip to the grocery store or to anywhere else where you buy things will shatter that illusion.

Keep in mind that gold is the #1 performing asset class since the year 2000 and also in the last 5 years. This is even though those “in charge” have actively managed stocks, bonds, and real estate higher and have blasted the prices of silver and gold lower during this time. When the real day of reconning comes it should be explosive.

There are many other warning signs out there also. To me, one of the most concerning concerns is in private credit. There have been many warnings from Blackrock and others that there could be problems here. The problem is that this “market” appears to be FAR steadier than it actually is because it does not trade day to day. It is marketed as stable but there have already been funds that have had a 100% valuation like Renovo which was on the books for 100 cents on the dollar and days later was bankrupt and worth ZERO. (CNBC) Obviously, the lack of reporting and oversight allowed that to happen. The numbers on the page bore no resemblance to the VALUE of the holdings. How many more are out there that are pretending to be at full value and may have little to NO value at all?

Keep in mind that these marketed as “safe” loans were loans made when banks were unwilling to lend. That should be a major clue right there as to how unsafe many, if not most likely, are.

The reason that this is so important is that funding and refinancing could dry up if too many of the cockroaches- as Jamie Dimon has called them- are exposed. This could lead to untold numbers of Zombie companies folding and massive losses not just on the debt side but on all of the stock of companies that cannot refinance and default. This would be another nail in the employment coffin and could cause a bloodbath in stock “markets.”

These are not far-off problems but problems that are staring at us in the face. The problem is that the financial game shows do not lay out the actual danger that exists. You may take action to protect yourself and the sponsors would be upset.

Be Prepared!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not prove to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.

Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are rising overall.

Precious Metals, including gold, are subject to special risks including but not limited to price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.