I: Energy prices drive inflation.
Energy prices are down and still falling – so falling inflation in 2026. What a transition from two-years ago!
II: AI drives down inflation because it is more efficient than the current processes.
From disruption to deflation: AI is changing the investment equation
Aug 26, 2025 – BlackRock Advisor Center
III: One and two above allows interest rates to fall. Trump (in addition to I & II above) wants interest rates down for multiple reasons
- 2026 November elections. Every politician want the economy booming if possible going into an election.
- Lower financing cost for refinancing USA National Debt.
- Affordability – Helping the lower the cost of housing & construction market
- Lower interest rates helps weaken the us dollar allowing better USA export prices. This helps the US to compete globally with lower export pricing.
- Falling interest rates allow higher bond prices since interest rates and bond price have a direct, but inverse correlation. Rising bond prices is perhaps the highest probability trade of 2026.
- Lower interest rates and lower inflation should be supportive of fim to higher stock, bond, commodity and crypto markets.
This is not to say 2026 will be free of drama.
Computer trading rules the market. Sentiment shifts at the drop of a hat. Combined, these two factors set us up for sudden sharp market swings. Learn or get comfortable with sudden and sharp market drops and rallies.
Learn or get comfortable with sudden and sharp market drops and rallies.
We only need to look at the sudden rally in Silver and Gold – both Physical Metals and in Mining Stocks. At the same time Crypto and Blockchain companies’ stock prices have been crushed since last October.
Neither sector had news events that justify such dramatic up or down moves.
As an important aside, we expect these two moves to reverse in 2026
Crypto/Blockchain to out-performing Gold and Silver in 2026
LOTM remains positive on both sectors long-term. The debasement trade will continue for years. We have and will, in 2026, shift some funds to the crypto/blockchain sector from the gold and silver area.
Debasement Trade Explained: What you should know
By Tax Project Team Published: 10/10/2025
Crypto/blockchain is entering three very long-lasting and large scale growth markets: 1) as a store of value debasement trade and network use through 2) Stable Coins and 3) Real World Asset (RWA) applications.
Example of RWA:
We have heard SEC chairman Paul Adkins say he expects stocks to be put on blockchain in the next three-years.
Key Points from Paul Atkins’ Stance:
- Tokenization is the Future: He views bringing financial assets onto the blockchain (tokenization) as the next big step for capital markets.
- “Project Crypto”: An SEC initiative to update rules, create a “token taxonomy,” and develop exemptions for digital assets.
- Benefits: Predictability, transparency, reduced risk through on-chain settlement, and maintaining U.S. leadership in finance.
- Supportive Stance: A shift from past approaches, aiming for clear frameworks for crypto-based trading.
- Timeline: While not a hard deadline for all stocks, his comments suggest significant progress and regulatory clarity expected within the next couple of years (2026-2027).
In essence, Atkins is pushing for a regulatory environment where tokenized stocks (digital representations of ownership) become mainstream, potentially within the next few years, rather than mandating an immediate switch for every existing stock.
Atkins predicts US financial system may shift to tokenization within a ‘couple of years’
Paul Atkins says on-chain settlement could reduce risk by eliminating traditional trade gaps
Dec 5th, 2025 – Fox News
LOTM: This is a massive use of crypto and blockchain and, in many people’s opinion, an opportunity of a lifetime. Installment of crypto & blockchain into global applications is expanding rapidly and will evolve over the next 15 to 20 years. This is an opportunity you want to be involved with!
Bottom line is this: KNOW YOUR COMPANIES. Access to information is readily available with a majority of it free online.
Knowing about the management, balance sheet, and capital structure, along with “Why You Own It,” will allow you to make quicker decisions without needing to deal with the emotional feelings of fear and greed!
This knowledge of the above items will allow the quicker decisions for buying on sudden weakness and selling into rapid price advances.
Good luck to us all. Contact me if you want to review situations. I am not a registered investment advisor, so any opinions or perspectives will be strictly my own and have no conflict of interest from third-party influences.
The final decisions belong to you but it can help to get an informed opinion to back you up or point out potential risk you don’t see.
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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