SP and Gold Extremes and Reversals

By: GE Christenson | Mon, Feb 3, 2014
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Michael Lombardi has written many good articles about gold, the economy and the stock market. A few are listed below.

Why I'm So Cautious About 2014
Massive Shock Coming to the Gold Market
If Gold's A Bad Investment, Why ...
January Indicator Points to a Terrible 2014 For Stocks

A few quotes from his articles:

"... central banks will be the major drivers of gold bullion prices going forward. Countries like China and Russia will need more of the yellow metal, because they simply do not have enough in their reserves compared to the United States, France, Germany, or Italy."

"The stock market looks like it's in big trouble. This shouldn't be a surprise to my readers; I have predicting this event for months.

"So far in 2014, and we are only three weeks into it, the Dow Jones Industrial Average has shed 709 points (4.3%). But I think the explosions for 2014 are just getting started."

"Why can't Germany get its gold back? Do Western central banks really have any gold left in their reserves or have they sold it all? And why is China, now the world's second-largest economy, buying so much gold? These are questions that lead me to one conclusion: gold prices should be a lot higher than they are today."

He has looked at the gold market and the stock market and commented on issues that are important for understanding our complicated financial world. He thinks it is time for reversals in both the gold and stock markets.

I agree with Michael Lombardi. The following are my comments - based on logic, my analysis, best estimates, and an unfortunate lack of central bank transparency and valid data on the gold in storage.

The implications are important. In very simple terms we can view the world and invest based on option A or option B.

Option A: (Mainstream media view as I interpret it)

Option B: (Alternate media view as I interpret it)

Additional Reading:

Stocks to Crash as U.S. Lies To Its People
Beneath The Surface (missing gold)
Don't Buy The Dip
Silver, Gold and S&P: Trend Change Due

 


 

GE Christenson

Author: GE Christenson

GE Christenson aka Deviant Investor
www.deviantinvestor.com

GE Christenson

I am a retired accountant and business manager who has 30 years of experience studying markets, investing, and trading futures and stocks. I have made and lost money during my investing career, and those successes and losses have taught me about timing markets, risk management, government created inflation, and market crashes. I currently invest for the long term, and I swing trade (in a trade from one to four weeks) stocks and ETFs using both fundamental and technical analysis. I offer opinions and commentary, but not investment advice.

Years ago I did graduate work in physics (all but dissertation) so I strongly believe in analysis, objective facts, and rational decisions based on hard data. I currently live in Texas with my wife. Previously, I spent 20 years in Barrow, Alaska, the northernmost community in the United States, 330 miles north of the Arctic Circle.

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/