GOLD REVISITED
Gold vs. The Market: Implications
Worldwide ETFs Portfolio
5.9 years June 28, 2002--March 21, 2008
See Comments below
Comments 3/21/2008
The short brown bar at November 9, 2007
was the first date we mentioned the possible inverse correlation of gold's rank level and the direction of the stock market. Gold was then at rank 6. See it here with comments at the time.
In the last few days the U.S. Fed put into place some unprecedented rescue innovations which may or may not work. Gold will help tell the tale. A big danger of unprecented actions is that they will forthwith turn into precedents. That will change the fundamental structure of the national and global financial systems and credit markets. It will constitute a further step toward singular world centralization of standards, regulations, and controls. I believe that would wreak unhappy outcomes for capitalism, free enterprise, and standards of living. Perhaps alternatives will evolve to preserve the existing system which works more or less well--with periodic blowouts and crashdowns, withal.
The highest authority in the world cannot stop a panic that has begun. If we are in one now, then Gold's subsequent drop to rank 3 or lower may signal panic's end and announce that the new bull market in stocks and funds has begun.
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