More than a correction for the stock market as a whole. Call it a destruction, demolition, or down market in the extreme. Much more than a correction. What with a dissolving currency underpinning the real return, if you did not realize it before, the real return is solidly negative and gaining speed for the SP500, Dow, and Nasdaq. 10% pre-inflation return leaves you wanting about 3% before the tax man comes and bites another 15% off of the total, or about 2 points.
Gold and silver slowed their ascent and have given back a little, but nothing much. Looks like there is significant support at the break out points of around $816 and $14.50 A few more days or no more than 2 weeks will tell. We should be back in the saddle for a ride well above the last resting points of $910 and $16.40
The attention of the world is going to gold and silver is waiting as the understudy.
The performance will be brilliant and even overshadow gold if silver gets into the high 20's, even $30. Seems like a huge stretch now, but then we were at $4.25 not very long ago begging for a far in the future $10/ounce. Now we are not satisfied with $20, we want $30!
At that point, anyone who has been within ear shot of me has made at least 7x their investment in about 5 years. Not bad.
The silver and gold stocks will behave first as stocks, then as options for the metals. So they have gone down with the market. They should rise with the metals, with gusto. I will be loading up with some of the juniors that I sold out of about 18 months ago, thank fully they have not run far without me. The next reflation and gold over $1000 should send the stocks heavenward!
Fortunes of a lifetime lie ahead...hop on now.
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