The Simple Life Is Definitely The Best!!
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It’s easy to see that ever since the year 2000 gold bullion has been in a bull market and the S&P500 has been in a megaphone pattern bear market. Gold has dramatically increased in price while the S&P500 has done nothing but go up and down. The Fed’s QE’s plus a twist are placed on the chart of the S & P 500. They inform us of when the Fed believed it had to goose the economy and the markets in order to keep them from collapsing. O. K. but what next? Will gold keep going up? Will the S&P500 head down again?
GOLD QUARTERLY
S&P500 QUARTERLY
The Long-Term Delta turning points have done a simple but magnificent job in keeping us informed as to what gold’s next move will be. The following is what they have been kind enough to inform us of ever since the gold bull market began.
Gold peaked at every LTD # 4 high and every grouping of LTD # 1 high and LTD # 2 high. Every low took place at LTD # 3 low and LTD # 5 low. All the lows were higher lows. All the highs were higher highs. Gold last bottomed at LTD # 3 low in June 2013. The next high is due to arrive at LTD # 4 high.
GOLD MONTHLY
This chart has been presented in numerous REPORTS. A final E leg down in Major Wave IV should be accompanied by gold moving up in a most dramatic fashion. Well, we now have a pretty good idea that the Fed will continue doing QE’s as far into the future as they can see. That may or may not be very far. The general expectation is that if the Fed continues to do QE’s the Stock averages will continue to move up. We know that gold is in a long term bull market. The S P500 and the DJIA, if left on their own, would normally begin a leg E collapse at this time. If the Fed through using QE’s and keeping interest rates low can keep the stock averages going up, they will be introducing us to a way of life that has not been seen in a major country since the Weimar Republic. That would be stock averages up and gold up at the same time. Based on the Weimar Republic’s market experience gold would far outperform the stock averages.
President Nixon closed the gold window on August 15, 1971 -- the U.S. Dollar has been a pure fiat currency. It is redeemable for fiat dollars and nothing else. Since August 15, 1971 the U. S. A. has experienced either a bull market in gold or a bull market in the S&P500 and the DJIA. However, there has not been a bull market in both the stock averages and gold at the same time. The only evidence in the last 100 years of a bull market in gold and a bull market in stocks taking place at the same time was experienced during the time of the Weimar Republic.
The top chart shows us that during the Weimar Republic hyperinflation gold began to rise in 1915 and made a double bottom in 1918. Beginning in mid-1918 gold began a dramatic rise in price. The second chart shows us that the stock market in the Weimar Republic did not begin its less dramatic rise until mid-1920 which was well after gold began its climb. Obviously some knowledgeable German citizens in the early 1900’s trusted their government’s so called money as much as some of us trust our current Federal Reserve Notes. What an irony! The world relies on the so called U. S. Dollar, while all the time the U.S. simply re – lies about its value! The above site has numerous informative charts about the Weimar Republic hyperinflation.” … Ron Rosen
Silver was also a big winner during the Weimar Republic hyperinflation.
There is no time left for for the Fed to decide. They have reached the cross roads. If they keep doing QEs, the stock averages should continue moving up. If they stop doing QEs, the stock averages should collapse.
As far as action or inaction by the Federal Reserve, heads we win tails we win. This is the kind of investment I like. It lets us lead the simple life!
https://www.deltasociety.com/content/ron-rosen-precious-metals-timing-letter
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