f e b r u a r y / m a r c h 2 0 1 6
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maybe we should call a spade a spade and
go on record saying that this rate hike was
supposed to be the "loosest" and, in turn,
it will be the shortest lived credit tighten-
ing in US history.
bull markeTs musT end
The US stock bull market that started in
March 2009 has had the second biggest
run and rise in more than 50 years. The
odds are against the US stock market with
every day that passes because of its dura-
tion, because of its reverse pyramid status
index value indication and because of zero
incurring inflation, making it likely that a
substantial correction is on its way.
Ultimately, all bull markets must end.
That's simply the nature of financial mar-
kets. The rate hike will be over and we will
be back into emergency measures territory
once more. Interest rates will be reversed
back to zero or perhaps even into negative
territory for that matter.
We could also have incoming
Quantitative Easing IV to shore up eco-
nomic activity by the Fed and hope that
we have an eventual short recession ahead
of us. Or we could have the ultimate wild
card and see no intervention from the Fed
leaving the financial markets for this occa-
sion to correct themselves in their very
special manner.
One thing that is certain is that all the
mentioned emergency measures that the
Fed will initiate or the no intervention
option, in light of an in-coming recession,
can only yield two sure results: the swift
and effective devaluation of the US dol-
lar and a rapid exodus of funds into safe
haven investments. Both have historically
proven sure indications of rise in price and
accumulation of gold.
Why gold – Why noW?
In light of such doom and gloom predic-
tions for the US economy and dollar,
it's time again to hold and horde one sin-
gle hard asset that has been time tested
and that has eternally proven as the only
type of investment during down and
unpredictable economic times. It's time to
buy gold!
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