All bears are not created equal. Some are deflationists, some are inflationists. Some predict the end of the world on any stock market correction, some are buyers on corrections. While I’ve warned that the future is very bleak, I’ve also always cautioned that you need to get the timing right. The big crisis is NOT here yet. Let Europe collapse first, then let’s start talking.
I’m sure the panic surrounding S&P’s debt downgrade of America is still fresh in your minds. Remember how scared you were when stocks were collapsing? Remember all the talks of the world ending? Well amidst all the panic, stocks have rallied, as I said they would, and they are still positive on the year. Give it some time. Don’t join the Armageddon crowd.
Japan had their debt downgraded earlier in the decade and it was no big deal. What other options do the big money have at this point in time? Let Asia develop their markets- only then will the big money have a place to park. And it’s when the big money starts fleeing Treasuries that the real trouble will begin.
Gold has worked off some of it’s overbought conditions and I believe one last rally is in the cards. Then we should see a correction. I don’t really want to chase this rally higher; I’d much rather keep buying in a correction.
Just be patient. When gold corrects and everyone says the bubble finally ended, I’ll be giving you perspective and telling you to add. Just remember how hard it was to buy stocks into this correction. It will be no different with gold.Follow