One of the greats in the business comments on Friday’s told takedown and another issues a major warning on stocks.
Friday’s Gold Takedown
January 11 (King World News) – James Turk: Another warning sign that US dollar is in trouble. Despite record Federal Reserve purchases of US Treasuries, interest rates are rising, meaning tipping point has been reached. Rates are now rising because of Fed purchases. Fed is debasing USD signaling higher inflation ahead.
I’ve been on the front lines of the central bank vs gold battle for a long time. … Friday’s seller was painting the tape. Seen it many times before. Fundamentals of precious metals remain positive and for last 5,000 years gold always wins the war – eventually…
To hear Sean Boyd discuss $3,000 gold and the big game-changer
for the gold market CLICK HERE OR ON THE IMAGE BELOW.
MAJOR WARNING ON STOCKS
Here is a small portion of an important report from Jason Goepfert at SentimenTrader: If you’re invested in one of the groups that has skyrocketed in the past couple of weeks, then it would only be human nature to feel a little giddy. Euphoric, even.
Based on a popular model, that’s exactly how many investors are feeling at the moment, as the Citi Panic / Euphoria model has soared to a record high.
3rd Highest Reading In History
… Whenever this proxy was above 1, occurring about 14% of the time since 1988, the S&P 500 returned an annualized -3.7%, compared to an impressive +21.4% when it was below zero.
Even though this proxy isn’t as extreme as the one shown above, it did just record the 3rd-highest reading in 30 years.
When This Happened In 2007, Stocks Plunged 36% In One Year!
Not surprisingly, forward returns after those peak euphoria readings were stomach-turning.
… The setup is ripe for a sustained pullback, and risk appears high relative to reward. We’re just not quite seeing the kind of consistent internal weakness that preceded most of the sustained and deep corrections following other overly-optimistic-to-euphoric bouts of sentiment. This is another example of why Jason Goepfert is the best in the world at what he does – providing actionable market data. To subscribe to the internationally acclaimed work Goepfert produces at SentimenTrader CLICK HERE.
To listen to Alasdair Macleod discuss the takedown in the gold and silver markets and what to expect next CLICK HERE OR ON THE IMAGE BELOW.
To listen to a brand new audio interview with Doug Casey CLICK HERE OR ON THE IMAGE BELOW.
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