Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Fear on Wall Street– The Real Deal

Stock-Markets / Credit Crisis 2008 Jul 17, 2008 - 10:03 AM GMT

By: Dudley_Baker

Stock-Markets

Best Financial Markets Analysis ArticleYou may recall our previous article in August 2007, “ Fear in the Streets – A Dress Rehearsal ”.

Well it looks like now the fat lady has not only warmed up but is singing and hitting that high C. This time the fear is real with IndyMac Bank in California disappearing, and Freddie Mac and Fannie Mae under a great deal of stress. Yes, more government bailouts which will cost billions and even more reason for a U.S. Dollar collapse. So, the credit and liquidity crisis continues, the economy slows, oil remains high and inflation is rising in the world setting the stage for much higher prices for gold and silver in the coming months and years.


As a brief, refresher, in our original article, we said….”as we write this article it appears that fear is abating and that the financial markets are getting back to business as usual.  Nevertheless, one major piece of bad news could send the markets tumbling once again.  So, have we just witnessed the worst of the market decline s or was this just a dress rehearsal for a much more severe and perhaps catastrophic decline ahead ?  None of us ha s a crystal ball going forward from here, but we as investors continue to seek opportunities always aware of the potential short term downside risk.”

On the charts below, you can see that back in August of 2007 the S&P 500 plunged down to 1375 and then rebounded to new highs in October. Gold was trading in the $650 - $700 range and the U.S. Dollar was trading around 80 to 82.

If you dare, look where we are now.

The S&P 500 has traded down to touch 1200, what a nasty looking chart. The U.S. Dollar has fallen out of bed and is now at 72. Some are still looking for a dollar rally. To me from the chart below, we have already had the ‘rally' up to 74 and are will be breaking out to new lows soon.

The bright spot, as it should be, is our favorite, gold. On balance, gold has performed exceptionally well recently and appears to be coming back into favor as the defense hedge for investors. Gold hit $1030 in March, then fell back to around $850 and now we are back on track with gold in the $960 range as we close this article. Even a couple of days ago on CBNC, some of the fast money boys were talking positively about gold. Of course, it only takes a $20 pullback and these guys think the party is over and run for cover.

What I take away from the charts is that the S&P 500 is due for at least a brief rally before heading lower and gold is due for a brief correction which is exactly what is currently happening.

 

This time the fear is real and the possibility of a meltdown is possibility is real. It is getting scary and you must make some tough decisions. Do I go down with the ship (financial markets) or get into gold, silver or related assets? Your financial survive may be at risk and as we like to say, ‘no time to hide, your needed on deck'.

Each investor must decide for themselves in which markets or sectors to invest and then make some informed decisions as to which specific stocks, ETF, etc., to purchase.

Probably most readers on this website are already on board the train for the bull market in gold. Where else can you be in these treacherous times? But I realize that many investors, including myself, having purchased the junior mining shares have questioned our strategy over the last 2 years or so. It is not been pleasant and frankly, with the incredible drawn downs on many of this stocks, I am sure many investors have run to the exits only to return in the coming weeks and months at much higher prices. For those of us who have been around for awhile, we realize that things change and they can change very fast in junior mining sector.

There are so many reasons for the juniors to be down; from the high energy costs to the shares falling with the general markets, but we continue to believe the future rewards will be outrageous. We see the next great opportunity from September into perhaps the first half of 2009 with the juniors finally having an incredible run.

We have recently seen some of the senior mining shares doing very well and a few hitting new highs and we believe this is setting the stage for the next leg up with the juniors following or perhaps leading. So, we suggest investors continue to accumulate shares in quality companies. Good management, good properties and cash in the bank are essential. If the companies you like have long-term warrants or LEAPS trading, we suggest you give them serious consideration. There are many great companies with warrants in our database, and one with a remaining life of 9 years, and several producing properties. In addition, for our subscribers, we have just completed our database for all natural resource companies having options or LEAPS, giving investors access to more great companies and leverage opportunities.

A necessary skill for investors during this time is patience. In the coming weeks and months we suspect that fear will become our friend, driving many investors into our sector for the first time. Inflation is now in the daily news and everyone will soon know that they must have gold or silver in their portfolios.

For those readers desiring more information on warrants you may wish to visit www.PreciousMetalsWarrants.com where you will find much more information and education on warrants.

Dudley Pierce Baker
Guadalajara/Ajijic, México
Email: info@preciousmetalswarrants.com
Website: PreciousMetalsWarrants

Dudley Baker is the owner/editor of Precious Metals Warrants, a market data service which provides you with the details on all mining & energy companies with warrants trading on the U. S. and Canadian Exchanges. As new warrants are listed for trading we alert you via an e-mail blast. You are provided with links to the companies' websites, links to quotes and charts, tips for placing orders and much, much more. We do not make any specific recommendations in our service. We do the work for you and provide you with the knowledge, trading tips and the confidence in placing your orders.

Disclaimer/Disclosure Statement:PreciousMetalsWarrants.com is not an investment advisor and any reference to specific securities does not constitute a recommendation thereof. The opinions expressed herein are the express personal opinions of Dudley Baker. Neither the information, nor the opinions expressed should be construed as a solicitation to buy any securities mentioned in this Service. Examples given are only intended to make investors aware of the potential rewards of investing in Warrants. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions involving stocks or Warrants.

Dudley Pierce Baker Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in