This is the burning question for economists worldwide on the Eve of the New Year. This article is a compilation of many erudite sources and opinions copied from the Internet....plus my own thoughts.
Bear's Lair
Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.
Season's greetings from all of us to all of you, wishing you peace and profits wherever you are!
Typically, the week before Christmas, stocks and commodities drift higher due to the lack of participants. Light volume favours higher prices, which is why stocks want to rise going into the holiday season.
Recession is a four-letter word in the financial markets, striking terror into the hearts of everyone. And if reports since August are to be believed, there is a recession hiding behind every tree.
"Gold again proves it is not the safe haven many had hoped for, breaking the 200-day moving average, the first time since 2009 and signalling that prices may drop to US$1400/ounce."
Paul Krugman's article in the December 15 issue of The New York Times under the title G.O.P. Monetary Madness takes G.O.P. presidential candidate Dr. Ron Paul to task for his 'ideological' stand on money.
Chart created using Omega TradeStation 2000i. Chart data supplied by Dial Data.
Our work with Gold is based on a "Model" off the late 70's Gold Bull that has been replicating nicely since we started the Fractal Work with Gold back in 2002 and 2003.
Last week saw a severe breakdown in the Precious Metals sector that is now viewed as marking the start of a bearmarket, and that means the onset of a deflationary episode that is likely to prove more serious than that we witnessed
It's that time of year again and I'm not talking about the holiday season... What I am talking about is another major market correction which has been starting to unfold over the past couple weeks.
The long-in-the-tooth commodities correction plunged to new lows this week. Traders were disappointed the Fed didn't announce a new quantitative-easing campaign, so they dumped the popular commodities with a vengeance.
"We must all hang together, or assuredly we shall all hang separately." --Benjamin Franklin, at the signing of the Declaration of Independence, 1776
I have always told my children from a young age that the heart must make the initial choice but that the mind must make the final decision.
It was actuality a pretty quiet week all in all with no decisions on Europe, just meetings. Of course most all of Europe was put on watch by a prominent U.S.
The stock markets are still riddled with anxiety, with traders nervously awaiting the next shoe to drop. Will Europe fracture? Does a global recession loom?
The Gold Tsunami analogy continues, and it goes like this……..
"The Dollar Inflation psychology pulled back out into the sea, taking the price of Gold with it.
In his latest report, Samuel Kress of SineScope reviewed the 120-year cycle and broke it down into its constituent cycles.
It is now evident that the gold price has been trapped in a narrowing trading range since its early September pre-plunge peak - a Symmetrical Triangle.
We had an absolutely amazing week for the US and world indices as news that joint central bank action was going to be taken. Many indices rose over 7% on the week which is nearly unheard of.
I think you will admit that we are in the middle of one major crazy financial mess.
No subject related to gold is more debated than the possibility that gold may again be confiscated by the US Government during times of economic crisis.
Let's be frank here. I spend between 12 and 15 hours a day working in front of my computer screens watching markets and charts and reading news and reports from all over the world.
Thus far in 2011 the overall stock market movement has been much different from what we had in 2010. This year we have seen nothing but sideways to lower prices with wild price swings on a day to day basis.
The general stock markets' day-to-day price action utterly dominates individual stock sectors, including commodities stocks.
Historic and recent scientific developments add to our understanding of how the entropic force from physics may govern everything in nature, including ecosystems and economics.
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A single ounce of gold (about 28 grams) can be stretched into a gold thread 5 miles (8 kilometers) long.
