When the market collapsed in 2008, everybody said, ‘I didn’t see that coming.’
At that time I was heavily into real estate investing and owned multiple rental properties, and I was also flipping properties to other investors. I even held training seminars on how to be a real estate investor.
Did I know we were in a real estate bubble? Yes and in the back of my mind, I thought this can’t go on forever. But I was making so much money and living the high life, that I was blind to the coming train wreck. I kept telling myself that real estate has always held its value, because it’s an asset and part of the American Dream.
The collapse hit me so hard that I ended up losing everything. I had to file bankruptcy, lost my million dollar home, yacht and my rental properties.
I experienced the kind of loss that changes your life and your perception of reality. I told myself that I would never let that happen again.
So I started studying the markets. I wanted to know how things work and what causes the changes in the markets. I wanted to learn how to protect myself from experiencing this type of calamity in the future.
I went to an international trading school to learn technical trading and options trading from actual floor traders and market makers who worked with some of the largest investment firms in the country.
I studied and read everything I could find regarding the markets, Federal Reserve policy and central bank interventions. I learned how international currencies exchange hands and how countries are required to use the U.S. dollar for international trade. I learned about currency wars and the purpose behind them.
But the most important thing I learned is that control of the once free markets have been taken over by the central banks and manipulated to such an extent that, nothing is as it seems anymore. There is rampant propaganda coming from politicians, the Fed and the mainstream press. It’s easy to spot, if you’re informed and if you’re watching the market indicators.
As a result, I’ve taken a defensive posture to protect myself from the coming collapse. It’s also why I’m bullish on precious metals, both physical metal and PM stocks.
We know why and how the bubble was created in 2008, but the policy of this government has only been to double down on the same mistakes that caused the problem to begin with. Now we have multiple bubbles and they are currently reaching the breaking point. The difference this time is that we don’t have any way to stop it or recover from it, except for a complete reset of the markets. That should have happened back in 2008, but now it’s much worse. Normal market forces always win, sooner or later.
Once you understand and accept this fact, you will know how to position yourself for what’s coming. There will be a great loss of wealth during the coming collapse, but there will also be a tremendous transfer of wealth to those who position themselves properly.
If you want to be in a defensive position, hold physical gold and silver, reduce your exposure to the stock market, hedge your stock positions with short positions (PUTS) and PM stocks, also hold as much cash as you can afford. Not in your bank account, the banks might close one day and not allow access to it. Keep it in a safe place where you can gain access to it in a crisis. Cash will come in handy when deflation causes asset prices to drop down to extreme levels. You will be able to buy up assets like real estate and other commodities, which will rise in value as inflationary forces kick in later in the cycle.
A perfect storm is coming, be prepared.
Live long and prosper.
Gold is a friend of free markets and the enemy of central banks and their fiat money.
(RGLD) (SLW) (GDX) (GDXJ) (PHYS) (PSLV)
The tides of change are happening now. The next move up in PM may be slight at first and then spectacular. I think it’s going to surprise you. My suggestion at this point is to get in for the long term, rather than a short trade. If you’re trading options, go for a late 2016 expiration, say September, December 2016 and hold on. It’s going to be a wild ride and you will be amazed at the gains. This is how wealth is made.
Last week I told you to expect a breakout in Gold and for a price target up to $1150 - $1160. Well, it reached resistance at $1156 and is now consolidating for another move up from here. Last night, Gold broke resistance above $1157 and made it all the way to $1167 before the Cartel pushed it back down this morning in early premarket trading.
I expect the price to push through and continue its rise from here. The dotted lines are the next resistance lines to aim for. I think we can expect at least another 80-100 point rise or higher, before any substantial retrace.
Stock Market Indices
This is it folks. The bear market has begun. Look at the massive break of support in the weekly chart of the DOW below. If you’re not out of the stock market now, you need to get out at the next bounce back up. The next bounce up will probably be a ‘dead cat’ bounce, meaning that it will not go above the broken resistance line.
Also, if you want to make some money on the bear market, you could buy 2016 PUT options in (SPX) or (QQQ) and ride it down over the next few months.
Energy Stocks: (XLE) (UNG) (USO) (LNG)
Crude oil has crashed back to new lows. The Saudis continue to produce oil even with the decrease in demand and the new low prices. Who knows when this will end? I wouldn’t be surprised to see oil drop into the $30’s before bottoming.
Financial Stocks: (XLF) (IYF)
I’m staying away from financial stocks at this time, until after the S&P correction. Once this economy implodes, financial stocks are going to lead the way. I will place short positions at that time.
Biotech: (BIB) (KITE) (IBB)
Just as a rising tide raises all ships, a receding tide will lower them as well. The correction in bio-tech stocks has begun.
Commodities: (FCX) (JJG) (DBA)
Commodities will move higher when we have inflation, however, I think we will start with deflation as the global economies crash. Inflation will begin once the central banks begin printing more money to try to stem the crash in the markets. I will just watch these until I see a signal of a move up in price and a break of the downtrend line.
Richard Russell Warns We Have Now Entered A Bear Market In Stocks And Fred Hickey Expects A Huge Rally In Gold!
All Hell Is About To Break Loose As The World Hurtles Into Chaos And Unprecedented Levels Of Fear
I fear that this coming September – October all hell will break loose in the world economy and markets. A lot of factors point to that, both fundamental and technical indicators and this indicates that we could have a number of shocks this autumn.
Available Physical Gold And Silver Is Disappearing
I deal with one of the largest companies in the world and what we are seeing is what I call ‘The 90 percent factor.’ Historically, when gold and silver are set for an explosive move, 90 percent bags become virtually unavailable.