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Gold & Bond Markets Are Now At A Massive Inflection Point
Today Bill Fleckenstein spoke with King World News about gold and the bond markets now being at a massive inflection point. Fleckenstein, who is President of Fleckenstein Capital, also believes that the Fed will come to be, “... viewed as the enemy that it should have been viewed as all along.”
Here is what Fleckenstein had to say: “The angst people have about gold, you would think it was down 20% on the year instead of up. For the last twelve years while gold has been increasing in price, people have been uncomfortable and there has been a lot of talk about the bull market being over.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
December 11, 2012
Bill Fleckenstein continues:
“With the exception of a few brief periods, when gold did what it was supposed to exactly when everyone thought it should, people have been uncomfortable owning it. I think that’s the definition of a bull market.
I don’t know when gold will go wild....
Continue reading the Bill Fleckenstein interview below...
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“The public isn’t involved. They will be at some point. I can’t say what’s going to be the event that’s going to be the psychological sea change which will cause more people to own gold or to start a bond market revolt.
The fact of the matter is that gold has been increasing in price for twelve years. It’s increased this year and it will probably increase next year. It’s going to keep going until the politicians do something sane and we have a legitimate currency.
That’s not even in the realm of possibility right now. So gold will be the most unloved, best performing asset for the next few years probably. I think that the maximum moment for the deflation fear trade is past, and we are in an interlude between that and the inevitable concern which will happen next about inflation or stagflation.
It is utter nonsense to own bonds with next to no nominal yields with inflation where it is. It’s only the fear that you might not get your money back that drives people to do that. I think that we are in the processing of changing, but this is a big inflection point.
I was talking to Jim Bianco last week, and he pointed out that starting in about 1998, stocks and bonds started tracking each other in a way that he suggested was the start a deflationary fear era where the size of the asset markets made people fear that. This started to change recently and that would be the technical corroboration of the view I am espousing.
We’ll have to see. It may take some time, but as sure as we’re speaking, there will be a crack-up in the bond market. What the Fed wants won’t even matter, and at some point the Fed will be viewed as the enemy that it should have been viewed as all along.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The above portion covering gold was just a snippet of what Fleckenstein had to say about the markets. He covers a great deal of ground in a short period of time. The tremendous audio interview with Bill Fleckenstein is available now and you can listen to it by CLICKING HERE.
The interviews with Bill Fleckenstein, Egon von Greyerz, John Hathaway, Ben Davies, Dr. Stephen Leeb, Eric Sprott and Gerald Celente are available now. Also, be sure to listen to the other recent KWN interviews which included James Turk, Michael Pento and Wilbur Ross by CLICKING HERE.
Eric King
