Imagine a time when the market was stable, with very little volatility, and things had been that way for months. The markets experienced some dips, but overall it was stable. Then nearly overnight, disaster struck – the market started to collapse and a cataclysmic effect sent the market crashing down nearly 25 % in one day. Would you be prepared? How would your family survive in the wake of this fiscal tragedy? This isn’t just an idle question, it happened on the Dow Jones in 19872 on that fateful day remembered as Black Monday, and it could happen again. I remember October 19, 1987 like it was yesterday. I was just a young kid who lost most of my savings in one full swoop by investing in risky warrants that lost 90% of their value and were 6-weeks from expiring. There was no way I was going to recover my hard-earned money. My dreams of becoming a millionaire teenager were thrown out the window whilst others just jumped.
For those who keep an eye on the movements on Wall Street, there are warning bells going off signaling an impending crash. It’s hard to tell the midst of the apparent health of US equities, with major indexes hanging out in record high points this past week, and corporations generating earnings at a breakneck pace. In spite of all this, it’s becoming increasingly clear to certain analysts that all of this apparent prosperity is just the thin golden crust over a rotten core.1
These concepts come from the experiences of knowledgeable analysts who have watched the market for decades, recognizing patterns of boom and bust. It may seem counter-intuitive, but periods of volatility seem to indicate a healthy and thriving market, it’s when things settle down and seem stable that an impending crash is the most likely. Recent prime examples of this can be found both in the 1987 and 2008 crashes.
There’s no denying the market has been performing well lately, but there is some question as to what led it to push the Dow beyond 22,000 points. There are few answers with significant questions, and all it will take is one ‘major’ investor waking up to the pending reality and beginning to sell to see the entire stack of cards come tumbling down. Sound alarmist? Based on two great market crashes in history, what it sounds like is, instead, realism and educated guesses based on a well-documented past.4
Let’s take note of the fact that retailers have been shutting their doors in numbers that have no precedence, indicating the struggles faced by retail and distribution corporations. Those who try to find a silver lining think it’s just too expensive for retailers to keep up when faced against e-commerce competition. There is some logic in this, but it leaves a lot of questions open about the real reasons behind these collapses, especially when you take note of the fact that these same optimists tend to avoid commenting on the US economy as a whole.5
Considering the falling confidence in the market and as a result, the US economy as a whole – it’s unsurprising that they’re avoiding this topic. Take a look at September, a publication by the University of Michigan indicated that consumer confidence index in the market fell a stomach-churning 95.1 points, for those not familiar with how that rates against that index it was at a three-year average of 105.3 between 1997 to 2000, a period that was considered a boom time. Little else needs to be said to indicate how poorly this speaks for the health of the US economy.5
Two things are tied together undermining this confidence in the US Economy, though they are by no means the only factors involved. Throughout the last generation there has been a banner carried for the value of a college education, as a direct result the market is flooded with candidates that hold the same degrees and the hiring situation really hasn’t improved. Combine that with the creeping cost of education and the Millennials are in a very bad place when it comes to debt vs. income. It should therefore come as no surprise that these same Millennials aren’t purchasing homes.6
That my friends, is the other side of this two-part equation that plays into a much larger situation. The other are signs of a burgeoning collapse in the housing market due in part and caused in part, by the rising cost of real estate in the world. Sharp increases in the cost of homes, especially in a time when few people are buying, is a good sign that things are about to take a solid downward turn. That with a rising tide of delinquencies, poor affordability of homes, and lending criteria that are either too strict or, as we learned in the last housing bubble that popped, too lenient are all warning bells of what’s to come.7
What’s an investor to do during this time of dark omens and looming portents? The answer is pretty simple, we protect ourselves against the coming fall the same way we always have, by investing in the immutable solidarity of gold. Gold has been on a rising trend against the dollar since the beginning of the year. That’s any dollar you happen to name, from the Euro to the Canadian Dollar. The US Dollar has often been considered a safe form of fiat currency to store your investments in, but recent trends are showing that gold, the companion haven favorite, is showing itself to be more and more of a solid investment.8
The crash may be coming, and according to many analysts it’s not a matter of if, it’s a matter of when. Now is the time to start preparing yourself for the possibility of an eventual fiscal collapse. Protecting your family and your investments with the reliability of gold is just smart investing, a fact supported by referencing the last great stock market crash. Gold bullion not only held its own through the crash of 2008, but actually increased in value after the initial crash, proving its worth as a haven. 9 As for gold’s little brother: silver held up as well and went up shortly after the crash. 9 Prior to the crash it exhibited the same behavior it is right now, rising in tandem with bonds, just one more sign that a repeat of Black Monday may be looming.
For you free subscription, please visit: www.JuniorGoldReport.com
Dr. Kal Kotecha
© 2010 Junior Gold Report and TechMoney360
Junior Gold Report and TechMoney360 Newsletter: Junior Gold Report’s and Tech Money 360’s Newsletter is published as a copyright publication of Junior Gold Report (JGR) and TechMoney360 (TM360). No Guarantee as to Content: Although JGR/TM360 attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. It may contain errors and you should not make any investment decisions based on what you have read on here. JGR/TM360, its associates, authors, and affiliates are not responsible for errors or omissions. By accessing the site and receiving this email, you accept and agree to be bound by and comply with the terms and conditions as set out herein. If you do not accept and agree to the terms you should not use the Junior Gold Report and TechMoney360 sites or accept this email. Consideration for Services: JGR/TM360, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in the featured companies, as well as sponsored companies which compensate JGR/TM360 as such our opinions are biased. We may hold potions in and trade these stocks of the companies we profile and as such our opinions are biased. JGR/TM360 and its’ owner and affiliates/associates may buy/sell and trade the featured companies from time to time. JGR/TM360 has been paid by the companies. Thus, multiple conflicts of interest exist. Therefore, information provided here within should not be construed as a financial analysis but rather as an advertisement. Conduct your own due diligence: The author’s views and opinions regarding the companies featured in report(s) are his/her own views and are based on information that he/she has researched independently and has received, which the author assumes to be reliable. You should never base any buying/selling/trading decisions off of our emails, newsletter, website, videos or any of our published materials. JGR/TM360 aims to provide information and often stock ideas but are by no means recommendations. The ideas and companies featured are highly speculative and you could lose your entire investment – consult a licensed financial advisor if you are considering investing in any of the featured companies. Subscribers/readers are encouraged to conduct their own research and due diligence. The companies mentioned are high risk and considered penny stocks that contain a high risk of volatility, therefore consult your investment advisor and do your own due diligence before purchasing. Never base any investment decision on information contained from our emails, newsletter, website, videos or any of our published materials. No Offer to Sell Securities: JGR/TM360 is not a registered broker dealer, investment advisor, financial analyst, stock picker, investment banker or other investment professional. JGR/TM360 is intended for informational, educational and research purposes only. It is not to be considered as investment advice. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR/TM360 may contain links to related websites for stock quotes, charts, etc. JGR/TM360 is not responsible for the content of or the privacy practices of these sites. Information contained herein was extracted from public filings, profiled company websites, and other publicly available sources deemed reliable. Information in this report was taken on or before writing and dissemination and may not be updated. Do you own due diligence as information and events can and do change. Published reports may reference company websites or link to company websites and we disclaim and responsibility for the content and accuracy of any such information or website. Release of Liability: By reading and/or watching videos by JGR/TM360, you agree to hold JGR/TM360, its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.
Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by the use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report/TechMoney360 does not take responsibility for the accuracy of forward looking statements and advises the reader to perform their own due diligence on forward looking numbers or statements.