The link below is a well written article by precious metals wizard Egon Von Greyerz. Time is short. Well worth the effort to read the entire piece.
https://kingworldnews.com/greyerz-we-are-now-in-the-final-seconds-of-the-global-mega-bubble
Articles like this are biased because they are motivated by their own investments. Its like reading zerohedge which is a gold biased, conservative slanted site. You can make a case for most every investment angle, but when you ignore what drives the market then you will lose focus and your money.
Gold is an inflation hedge, there has not been meaningful inflation in a decade or more thus gold has pretty much done nothing in over ten years. Until a shock happens or inflation magically wakes up how can anyone think gold or that useless silver will do anything more than range trade?
It seems that every time the markets suffer a correction, the bears line up with a variety of "end of times" articles about the impending disaster on Wall Street. Go all the way back to the great depression when the Dow Jones crashed to a paltry 42 points. Doom and gloom was everywhere. Even in the worst crash of the century, investors were made whole in less than 5 years thanks to the power of compounding dividends. In generational terms, from that bottom in 1929, we are talking about basically three generations.....if you are anywhere close to 50, your mother's parents would have been in their 20's. So over that 3 generational period, the Dow has returned somewhere in the neighborhood of 60,000%.
Put that number in perspective! Each single dollar invested has provided a $600 return. $10 turned into $6000. $100 turned into $60,000. $1000 turned into $600,000. $10,000 turned into $6,000,000.
Meanwhile, the bears have always preached their doom and gloom and they have all been WRONG for as long as the markets have existed.
Which side would you rather be on?
The link at the bottom of my post is an interview of precious metals guru Andrew Maguire by Greg Hunter. Gold becomes a tier 1 asset at the end of March. Maguire says a silver price of $50 will be a joke!
https://usawatchdog.com/central-banks-going-long-gold-andrew-maguire/
Well....I would rather hold gold than Bitcoin....I will give you that much. I'm not very well versed on how the tier 1 designation affects banks, but I seem to recall this tier 1 discussion coming up many times in the past. In the end, gold has not historically performed well as an investment. I'm not sure how much that changes.
I don't know who Lightening is but I want to thank him for popping in. We are nearly a full year since this doom and gloom prediction and the Dow, the SPY and the QQQ are all up roughly 40%.
What a horrible decision for anyone that sold everything thinking a collapse was coming. You have now lost 40% and have MUCH, MUCH less room for error with your investment decisions. Your next moves are so critical. If you are wrong again you have devastated your financial future.
This is why you don't try to time the market.
Markets gained 40% in roughly a year since that doom and gloom article recommended selling and have given back roughly 10% in 3 days. All markets have corrections. If I knew when corrections were going to occur, I would time the markets. Since I don't, I just ride out the swings. Yeah, losing nearly six figures in a handful of trading days blows but it's the price of doing business.
The answer to the what now? is to hold on and collect dividends just like I did in 2008-2009. These are the times that require that emotions be put aside. Weak hands that sell out of fear typically end up the loser in corrections because they never last forever.
I expect we give back another 10% of the 40% over the next month or two or three until a vaccine is developed and introduced in (hopefully) successful human trials. Once the vaccine is developed, the crisis essentially ends.
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