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Weekend Show - Doc & Marc Chandler - Is the Fed Irrelevant? Gold Targets vs Rising Rates & USD

The KE Report Oct 10, 2026 52:01

Summary

Doc argues the bond market, not the Fed, now drives tightening, and sees gold bottoming near $3,500 and silver at $40-50, possibly not until 2028.

He advises holding heavy cash and preferred bonds yielding over 7% while slowly building positions in gold, silver, and beaten-down uranium stocks.

Marc Chandler notes global yields stabilizing but sees hotter US CPI risk keeping upward pressure on rates and the dollar firm above 102.

Chandler argues the AI build-out is absorbing global savings and lifting the dollar, leaving the yen roughly 60% and the euro about 33% undervalued.

Chandler urges dollar-based investors to diversify into foreign equities, especially Japan, to capture both the strong dollar now and future currency appreciation.

Key points on Newmont

  • Doc says he sold a good part of his Newmont position during the August bounce and expects the stock to go lower before he buys back in.
  • He otherwise kept his remaining positions, citing a very low cost basis and a reluctance to realize taxable gains.

Marc Chandler's takeaways

  • Top takeaway Marc Chandler sees tentative stability in global bond markets — US, French, Italian, Spanish and Portuguese yields eased slightly in the past week — but worries hotter CPI (year-over-year heading to about 3.6%) could push US rates up again.
  • He does not believe the 10-year near 5.3-5.4% is the peak and would need to see it fall back through 5% to be convinced, otherwise sees risk toward 5.5-5.75%.
  • He notes Treasury buying has shifted from price-insensitive central banks and sovereign funds to price-sensitive non-bank financial institutions and hedge funds, which means greater volatility ahead.
  • On the dollar, he admits his pullback call was wrong: the AI build-out is sucking in world savings (a Dutch-disease-like dynamic), most major currencies look deeply undervalued (yen ~62%, euro ~33% per OECD), and he sees another leg up toward 103 possible.
  • He advises dollar-based investors to use the strong dollar to diversify into foreign equities — especially Japanese stocks — and says midterms show no reliable relationship to the dollar, GDP, or rates.

Richard Postma's takeaways

  • Top takeaway Doc argues the bond market has taken over from the Fed — he sees the Fed as irrelevant and expects a second leg down in bonds to pressure all asset classes.
  • He targets potential bottoms around $3,500 for gold and $40-50 for silver, and warns the sector could chop in trading ranges until a likely 2028 bottom.
  • He is holding about 40-45% in stocks (mostly resource) with heavy cash and preferred bonds yielding over 7%, planning to sell rallies and add aggressively only at his target levels (GDX ~60, GDXJ ~70-80).
  • He is selectively buying beaten-down uranium stocks, expecting them to fall further before a real recovery, and holds oil positions that could rise much higher if the war premium eventually prices into the physical market.
  • He dismisses AI stocks as a late-1990s-style momentum gamble he refuses to chase, and thinks breadth deterioration means the S&P and NASDAQ follow the industrials down.