Is Gold Making A Triumphant Comeback?

Analyzing the long term economic and market cycles, the probability is very high that the stock market downturn may eventually be the worst since the Great Depression. Of course, there are many more safety nets now, and the central banks of the world will coordinate in order to soften a decline. But the Fed and other central bankers are not the solution. They are the problem.

All the ‘safety nets’ have to be paid for with money the governments don’t have. Therefore, it will have to be financed with ‘money creation’ by their central banks.

Is It Too Late For Investors To Panic?

In the first phase of a devastating bear market, such as early 2008, analysts always say, “Don’t panic. No one ever made money panicking.”

Our reply is that panicking is very productive at times. Panic is a protective response built into all life forms. It triggers the flow of adrenalin, which initiates a “fight or flight” response giving you either more speed when running away, or more energy to fight and make decisions.

Why The Next Two Years Could Be Worse Than 2008

On December 16, the Fed hiked interest rates by 0.25% as widely expected. The majority of analysts had predicted that because almost every Fed official coming into the media had made the case for a hike for several months.

In other words, the members of the FOMC had made up their minds, no matter what the facts were.

I wrote in our award-winning Wellington Letter that a hike would lead to a severe reduction of liquidity, and thus a strong market plunge in 2016.