Best of the Week
Most Popular
1.UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - Nadeem_Walayat
2.Perfect Storm - This Fourth Turning has Over a Decade of Continuous Storms to Come - James_Quinn
3.UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - Nadeem_Walayat
4.Billionaire Investors Backing A Marijuana Boom In 2017 - OilPrice_Com
5.Emerging Markets & Basic Materials Stocks Breaking Out Together - Rambus_Chartology
6.Global Currency Reserve At Risk - Jim_Willie_CB
7.Gold and Silver: Your Stomach Is Probably Wrenching Right Now - The_Gold_Report
8.Warning: The Fed Is Preparing to Crash the Financial System Again - Graham_Summers
9.Basic Materials and Commodities Analysis and Trend Forecasts - Rambus_Chartology
10.Discover Why A Major American Revolution Is Brewing - Harry_Dent
Last 7 days
North Korea Is Far From Being Irrational… It Has A Plan - 18th Aug 17
US Civil War - FUNCTIONAL ILLITERATES TRYING TO ERASE HISTORY - 18th Aug 17
Bitcoin Hits New All-Time High Over $4,400 As It Catches Paypal In Total Market Cap - 17th Aug 17
3 Psychological Ingredients behind Great Web Content - 17th Aug 17
The War on Cash - Rogoff, Orwell and Kafka - 17th Aug 17
The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - 16th Aug 17
Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017 - 16th Aug 17
U.S. Stock Market: Sunrise ... Sunset - 16th Aug 17
The Next Tech Crash Could Delay Your Retirement by a Decade - 15th Aug 17
Gold and Silver Precious Metals Nearing Breakout - 15th Aug 17
North Korea Showdown: Pivotal Market Turning Point - 15th Aug 17
Tech Stocks DOT COM Bubble Do-Over? - 14th Aug 17
Deep State Conspiracy or Chaos - 14th Aug 17
From the Trans-Atlantic Axis and the Trans-Asian Axis - 14th Aug 17
Stock Market Intermediate Correction Underway - 14th Aug 17
The Islamic State Jihadi Pivot to Asia - 13th Aug 17
Potential Pivots Upcoming for Stocks and Gold - 13th Aug 17
North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - 12th Aug 17
Gold Stocks Coiled Spring - 12th Aug 17
Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - 12th Aug 17
How to Alton Towers Half Price Discount Entry 2017 and 2018, Any Time, No Pre-Booking! - 12th Aug 17
Top 3 Technical Trading Tools Part 2: Relative Strength Index (RSI) - 11th Aug 17
What Makes Women Better Investors - 11th Aug 17
Crude Oil Price Precious Metals Link in August - 11th Aug 17
Influencer Marketing Predictions All Businesses Should Take Into Account - 11th Aug 17
Really Bad Ideas - Government Debt Isn’t Actually Debt - 10th Aug 17
Gold Sees Safe Haven Gains On Trump “Fire and Fury” Threat - 9th Aug 17
Why Is The Stock Market Not Trading On Fundamentals Lately? - 9th Aug 17
USD/CAD - Can We Trust This Breakout? - 9th Aug 17
New Monthly Rebate to Help Reduce Your Trading Costs - 9th Aug 17
Stock Market Divergences Are Now Appearing! - 9th Aug 17
Is Inflation an issue or did the Fed Mess Up? - 8th Aug 17
Top 3 Technical Trading Tools Part 1: Japanese Candlesticks - 8th Aug 17
Researchers Find $10 Billion Hidden Treasure In A Dead Volcano - 8th Aug 17
What Happened to Thousands of Sheffield's Street Trees 2017 - Fellings Documentary - 8th Aug 17
Solar, Bubble, Banks, War, and Legal Tender: Five Reasons Why You Should Buy Silver Now - 7th Aug 17
CRASH - If Some People Do It, Nothing Bad Happens, But If Everyone Does It, All Hell Breaks Loose - 7th Aug 17
Gold and Silver : The Battle for Control - 7th Aug 17
Precious Metals Sector is on Major Buy Signal - 7th Aug 17
Stock Market - Has Time Run Out? - 7th Aug 17
Get Ready for an Historic Upside Gold and Silver Run - 7th Aug 17
BOOM! Bitcoin Rockets To New All-Time High As Cryptocurrencies Surge Higher! - 7th Aug 17
U.S. Dollar: This Crash Signals the End - 6th Aug 17
Predicting The Price Of Gold Is A Fool’s Game - 6th Aug 17
Asda Sales Collapse and Profits Crash! UK Retailer Sector Crisis 2017 - 6th Aug 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

U.S. Dollar: This Crash Signals the End

Stock-Markets / Stock Market 2017 Aug 06, 2017 - 12:04 PM GMT

By: The_Gold_Report

Stock-Markets

As the Dow breaches 22,000 and the U.S. dollar slides, Lior Gantz, founder of Wealth Research Group, discusses portfolio positioning.

Apple reported earnings this week and the stock surged, taking the Dow Jones above 22,000 points for the first time in history.


This is our script playing out as Wealth Research Group laid out months ago—we called it the Blow-Off Top.

The future holds broad indexes like the S&P 500, Dow Jones and NASDAQ soaring into all-time highs until there are no buyers left—we are two to three quarters away from seeing this.

At this point, investors purchasing stocks are doing so at the highest valuations the stock market has ever experienced.

Most sophisticated investors are like us at this point:

1. All our Wealth Stocks, in which we took positions in for fair valuations, are part of our long-term core portfolio, and we won't sell unless they become incredibly overvalued, which is when we'll consider taking profits.

Remember that in the long run, compounding will get you to financial independence—it never fails, and we are positioned in the highest-quality businesses in the world.

2. Cash allocation should be around 20%, as liquidity will allow us to seize opportunities quickly.

But the biggest news yesterday isn't the Bitcoin fork, which didn't damage the cryptocurrency in the least. In fact, Bitcoin Cash is up 50% in a day the last time I checked. It's not Dow Jones at all-time highs, either—it is the USD index breaking down.

Our top cryptocurrencies are on fire.

This isn't normal for the world's reserve currency—this is highly unusual, and I want us to be prepared.

The USD rose 40%+ from early 2011 to the end of 2016. It was a massive uptrend, with huge implications for the global economy, but 2017 has seen a strong reversal.

The first six months of 2017 were the worst six-month stretch for the dollar since 2011.

The dollar is down more than 10% total in 2017. On July 21, the U.S. dollar hit a new 52-week low. That's the first 52-week low we've seen in the dollar in more than a year.

After new 52-week lows, the dollar has fallen 1.3% in six months, 2.9% over the next year, and 4.8% over the next two years.

The last time that the U.S. Dollar Index declined by 10% or more in a period of 151 trading days was back on April 29, 2011. At the time, gold was trading for $1,540.25, and over the following four months, it soared by $354.75 (a 23% gain) to a new record high of $1,895.

From today's price of $1,270, a 23% move would take the price to $1,562, which would make 34% of the world's undeveloped assets economic once again—certain high-quality mining shares will absolutely go parabolic.

This will be such a legendary run that you'll probably be able to fund a decade of retirement from the profits you'll bank.

Historically, from 1971 through today, when the U.S. Dollar Index declines by 10% or more during a period of 151 trading days, gold has gained by a median of 18.7% over the following 12 months.

The way we're going to get ahead of this trend is by holding our physical gold and silver coins and bullion—that's our insurance for mismanagement of the fractional reserve banking system.

On top of that, we have been smart about partnering with the best management teams that can turn raw deposits into cash-flowing mines. And with the coming commodities bull market, these seed investments, which were made at times of severe pessimism, will be our biggest gainers.

Energy is the key to a commodities bull market.

When oil prices rise, the commodities sector, as a whole, becomes the focal point of the investment universe.

It's either tech or commodities, and we get to benefit from both because we have been early to the cryptocurrencies sector, and we will be the pioneers of blockchain stocks as well.

Simultaneously, we have a foothold with the most solid mining companies out there.

The dollar is suffering a bear market, and while middle class America is losing purchasing power, our portfolio is completely hedged.

Lior Gantz, the founder of Wealth Research Group, has built and runs numerous successful businesses and has traveled to over 30 countries in the past decade in pursuit of thrills and opportunities, gaining valuable knowledge and experience. He is an advocate of meticulous risk management, balanced asset allocation and proper position sizing. As a deep-value investor, Gantz loves researching businesses that are off the radar and completely unknown to most financial publications.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosures:
1) Statements and opinions expressed are the opinions of Lior Gantz and not of Streetwise Reports or its officers. Lior Gantz is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Lior Gantz was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts provided by Wealth Research Group


© 2005-2017 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

Catching a Falling Financial Knife