Over the last three or four months there have been two major themes that I have focused on in my posts. Other than the occasional, individual stock recomendations, and the comments on political and covid happenings, I have concentrated on the stock market and the precious metals market. My main themes have been that the stock market was a huge, over valued bubble (especially the FAANG stocks) and that gold and silver were(and still are) in a long term bull market, despite the year long correction. We are now at the crucial point where everyone else will soon recognize that the stock market bull ended about a month ago, in early November. Over the next few months and probably lasting two years or so, most global markets are about to experience severe declines from their grossly over valued levels. That includes global equities, debt, real estate and crypto currencies. Many of these are likely to go no bid, and why not. Who is actually going to keep paying up in the greater fool theory, when the prices of all these assets go on to make lower lows as time progresses? As this mean reversion finally plays out, where is all that capital going to flow to? The only place left that isn’t shrinking. Gold and Silver will be the beneficiaries as a panicked world, with most markets in free fall, looks to preserve what wealth they have left. At first it will be mostly about wealth preservation. Eventually, like the markets that have now reversed to the downside, it will be about chasing after what is going up. There is probably at least 6 months to a year of rising gold and silver prices before the momentum players are climbing all over one another to get on board. While there is absolutely no doubt stocks, especially the FAANGS, are now in the early throes of a bear market, the recognition that the bull market in Gold and Silver, is about to enter it’s next phase, will soon become just as apparent. (see companion piece posted yesterday)https://goldtadise.com/?p=519264
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