DJIA
plunges in the past 2 weeks. Much more bearish is the China market (represented
here by Hong Kong’s Hang Seng Index) owing to trade conflicts between US and
China.
The negative features causing the slump are
given in the last post. These negative features last through early June 2019. Stocks
will fall more. Thereafter, a significant rebound is expected.
We have suggested better investment opportunities exist in precious
metals (Gold and Silver). Before any commitment, we must understand the root
causes of the super bullish markets in the past.
Gold Super Bull #1
Year-long rally creating the peak on 21 Jan 1980.
Gold Super Bull #2
Year-long rally leading to the peak in early Sep 2011.
I don’t think any economist has satisfactorily solved the mystery of
these super bulls. Detailed solutions will be disclosed to readers in my next
post.
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