Investing In Gold And Silver For Capital Preservation And Appreciation

What will the Fed do if the economy goes into recession again?

These guys have already done just about everything they can ... pulled every trick out of their hats ... and bailed out and backstopped virtually the entire financial system! But, all of that free money did was help boost another bubble in ASSET prices. It hasn't done a heck of a lot for the "real" economy. Unemployment remains stubbornly high and getting worse. Housing continues to slump. Investment is anemic and overall confidence is lacking. To put it mildly, the Fed is just pushing on a string - and more pushing isn't going to do a darn bit of good for those living in the real world!


These guys have already done just about everything they can … pulled every trick out of their hats … and bailed out and backstopped virtually the entire financial system! But, all of that free money did was help boost another bubble in ASSET prices. It hasn’t done a heck of a lot for the “real” economy. Unemployment remains stubbornly high and getting worse. Housing continues to slump. Investment is anemic and overall confidence is lacking. To put it mildly, the Fed is just pushing on a string – and more pushing isn’t going to do a darn bit of good for those living in the real world!

The last time Treasuries were this high (low interest rates) was during the depths of the 2008-2009 Collapse. The world bond markets are twice the size of the world stock markets and bond investors are typically more sophisticated than stock investors. So to see Treasuries failing to confirm the stock market rally by remaining elevated (falling interest rates) is a major warning sign of Depression.

The questions every investor should be asking him or herself today are:

Have central bankers’ policies really solved the issues that took down the financial system in 2008? Do I have faith that Ben Bernanke is in control and can manage the Sovereign Debt Crisis not if, but when it comes to the US? Do I truly believe that now is a great time to invest in stocks? The manipulation (200 to 300 point swings every 2nd day over the last few months) make the Black Pools and the Bear Raids of the 20′s and 30′s look like child’s play compared to today. All that plus 24 hour trading across multiple exchanges and trading platform, makes it almost impossible to get precise technical readings, especially when using Elliott Wave. What closing prices are to be used? Nevertheless, by focusing on the big picture, we can still get a good handle on what is going on beneath the surface.

In eight weeks, stocks lost back what it took six months or more (going all the way back to February) to gain. We are currently completing Wave 2 of a larger Wave I of C (or Wave III). Either way, I think there could still be one more minute rally left for stocks to finish consolidating the decline that began April 26th. That last rally leg should be completed by as early as Monday or by the end of the week at the latest. It should then be followed by a dramatic selloff (down 20% to 35%). In summation, we could have another week or so of stock price manipulations before being ready to fall off the precipice that we are now on.

Learn how to buy gold and make great money doing it! Gold is the best investment in ANY economy!

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