According to "The Elliott Wave Theorist," a 10,000 point decline maybe the minimum after everything is said and done by 2016. And, it is just not the stock market. Commodities, precious metals, especially gold and silver, real estate, and the bond market. The bond market will collapse, because investors fear major defaults, especially in the junk bond area. In other words, it is not the fear of inflation but deflation that will dominate investment landscape over the next four years in spite of the Federal Reserve System pumping more that $1 trillion into the banking system each year through 2015.
In regard to gold and silver, my critical support levels for gold and silver remain at $1,500 and $26, respectively. Currently, both gold and silver are deeply oversold. I would anticipate some kind of relief rally, which should not go above the December 12, 2012 highs of $1,716 for gold and $33.75 for silver.
With the aforementioned said, it would behoove everyone to get out of debt and remain as liquid as possible. "Happy New Year."
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