By MICHAEL GRAY
Global economies are about to move to next phase of the meltdown.
The Trading Bubble that has run the markets up since March is smacking up against the fear trade. Equities moving up on a weakening dollar is not a long-term investment. With the dollar index heading toward 75 stocks will need to move lower on inflation fears.
Gold and Treasury yields have been creeping up in the last two weeks, which shows that despite announcements to the contrary, equities are about to fall through the 900s on the S&P in the next two weeks.
Today market analysis is very difficult especially when you have Uncle Sam as the 800-lbs. gorilla in the pits. Government intervention –– whether directly or through market participants –– within multiple markets simultaneously, has disrupted traditional barometers, which would tell investors which way is down.
Propaganda within published gold price stories stating that the rise is based on doomsday evangelists buying the metal to be prepared for Armageddon could not be further from the truth. Hedge funds and private equity funds are large players in the gold market.
But if the stories stated that “smart money” was in the market, the feds fear a run on gold and the knowledge that the Chicago pits could not fulfill the orders for delivery.
You must be nimble with your investments in the near future with gold and silver as an excellent hedge. And if you are a gold investor than you must be in the silver market as well. Think of it this way if gold is $1,200 and ounce, silver will move from $15 an ounce to $25. Gold and silver move in lock step.
But watch out for unexplained pullbacks. These moves have very little to do with market fundamentals.
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