What will be the next great profit opportunities over the next two years? The stock market keeps on going up without major correction. Gold and silver despite gaining some early strength early this year are still struggling to break out from critical levels 1332-1400
I believe it is time to appreciate the historic position we find ourselves in the stock market and gold and silver
Based upon the 60, and 30-year cycles in the stock market and 20 years Cycle in precious metals, breakouts into new all-time highs above the current level is just a matter of time. But be warned first, we are now entering into the next 1-3 months for big correction in Wall St and final lows in gold and silver. This could be the legacy of these overriding Timing Cycles.
Why buy stocks? We always see bubble before it busts. Stock market is booming now but you must know every boom leads to a bust. Bubble is forming now due to big capital inflows into equities from bonds, unprecedented high levels of leverage, low interest rate, strong earnings and economy (not sustainable- faked?).
Why buy gold and silver? It is a hedge against stupid governments who create possible chaos of a monetary disaster, debt problems or even war which would cause world economies to fall apart as well.
Mr. Jim Rogers adds that conflicts become more likely when people are becoming poorer. Wars often occur during economic depressions, when there is mass poverty and unemployment. And we are headed right for such a period:
“In the next two or three years, when we start to have more economic problems and more inflation, it will become more likely that a war will break out. Wars typically start when people are unhappy about the economic situation and suffering from high inflation or food shortages. We are getting closer to the day where the price of wheat and the price of sugar go much higher, causing discontent among populations around the globe.”
“Well, wars start with absurd actions by absurd politicians – they always have. I wouldn’t expect there to be a war over the Ukraine, for instance, or over a few rocks in Asia. But wars always seem completely unthinkable until they happen.
“When you look at how wars start, it’s always one group of politicians doing something foolish, followed by another group doing something even more foolish. Before you know it, they go beyond the point of no return. Take the First World War, for instance. Nobody could have conceived that such carnage and destruction would happen. Within six months, people were looking at each other and asking ‘How the hell did this happen?’ It was insane and absurd. And yet, it went on for four more years, costing millions of lives. This can happen. – Sprott Global Resource Investment
This market is still holding a great promise of big return as long as you know when to buy and sell in the next 2 years…
Take advantage of the Timing Cycle and Technical analysis to invest is always a wise move!