Loading ...When this happens then money will flow into Gold and the PM miners. Where else to invest… Stock Market, Bonds, Real Estate will all be in the crapper. We are currently in the end of Phase 1 and soon to enter Phase 2.
Phase1) A panic crash followed by major rebound. Talk is still buy the dips and this was just a corrective dip in the Bull market.
Phase2) The Dow rebounded BUT, only made a secondary high. A lower high. It then resumes the downtrend. It threatens the panic lows and then breaks thru them. Talk changes to whether we are in for a 20% or maybe a 30% Bear market. Market bottoms and begins a flat line to minor up slope.
Phase3) Downtrend resumes with lower lows and people wonder where this will all end. Hedge funds close in on disaster, Pension funds need rescue. 401/Ira accounts are slaughtered. Wall Street layoffs hit affluent suburban real estate. Nobody is spending much money…Car sales, Restaurants, all consumer spending takes a major hit. PM’s are a refuge and people begin to figure this out.
Phase4) is optional . A gruesome resumption of Phase 3.