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US Stocks – Short term trend remains down hard. The next down-draft is expected to be sharp with the Dow falling several thousand points. Downside potential remains historic. Long term trend down though mid 2016. This phase down in stocks will be larger than the 2007 – 2009 decline. It has already started and the public is clueless. I expect ALL world stock markets to fall. US Dollar – Short and Intermediate term US Dollar trends have turned up. This rally could last several weeks or many months. Long term trend down, as is the case of all unbacked paper currencies since the beginning of history. Interest Rates – Have put in or will soon put in a major bottom. The bond market is currently the biggest bubble about to (slowly) burst.
Precious Metals – Short term trend up. That could change. Long term trend is up. At some point in the future I believe that paper currencies will have to convert to some type of precious metals backing. Or people may just lose faith in paper money .We want to be in silver BEFORE that happens. Interest in silver continues to grow as evidenced by the record breaking Silver Eagle sales and of course the fact prices have been rising. Real Estate – Down. The Economy – Down. Deflation will accelerate. Unemployment should ultimately double before this deflation ends. The largest measure of money supply in the US, M3, is contracting at a rate that is only comparable to the Great Depression (see http://news.goldseek.com/PeterCooper/1275321600.php )
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