HSBC, (https://en.wikipedia.org/wiki/HSBC),
is projecting gold to rise to $1,500 an ounce, since the 'real-estate
magnate' triumphed up from behind in the election results (http:/www.bloomberg.com/news/articles/2016-11...ction-hsbc-says).
It is protection against everything!
The U.S. Debt-to-GDP ratio is 125% and will be growing. 'Main Street
America' has been told that these are measures required to stimulate economic
activity, to prevent crises, increase employment, and soothe the financial
markets.
There are those who believe that we can keep spending money that is not
generated from economic growth by continued borrowing. This
"mindset" believes that the debt does not have to be re-paid. It is
this mentality that will make gold soar to new unprecedented highs.
The Congressional Budget Office is showing that the interest on our
current debt is about $250 billion for fiscal 2016. These annual interest
payments will be growing to over $800 billion in less than 10 years. We are on
an "unsustainable" path!
The Trump Economy:
President Elect- Trump has promised more spending. The budget deficit will
probably balloon by at least $450 billion. The key part of Trump's platform
is massive deficit spending on infrastructure and a lot of pro-growth
policies Then comes jobs.
There is a better chance that governments could coordinate their timing on
a spending plan after the German and French elections in 2017.
While Helicopter money (fiscal stimulus) is not the "sea of
cornucopia" to our financial woes, it could complement the ongoing easy
monetary policy and potentially generate some real economic growth. In a good
scenario, it could help to normalize interest rates. Fiscal expansion could
allow the FED to raise interest rates. Vice-chairman Stanley Fischer has
suggested that every one percentage point of GDP growth would allow rate
rises of 50 basis points.
Global Central Banks will need to continue to purchase their own bonds
otherwise, yields will need to rise to attract more investors into the market
to purchase up the additional supply.
The clearest message sent by President - Elect Donald Trump was delivered
in his election victory speech, a focus on greater infrastructure
spending in the U.S. Goldman Sachs Group Inc. analysts said in a Nov. 9th,
2016 report. "Without specific details it is hard to quantify the impact
on commodity demand, however such policies would support steel, iron ore,
zinc, nickel, diesel and cement."
This week I locked in target="_blank" 20.7%
profit on shorting the emerging markets with EDZ, and go long natural gas
using UGAZ for another 14% profit in just two days... global indexes and
commodity ETFs are going to provide massive opportunities going forward.
Invest In The Next Bull Market!
Fears over US election spur investors' dash for cash. target="_blank"(http://www.cnbc.com/2016/11/04/fears-over-...h-for-cash.html).
The real direction of the market's next move is the most important!
There will continue to be sharp price swings in all markets, especially
precious metals and currencies, usually up at first and then down towards the
end. However, when one begins the other ends, it will be fireworks that last
at least a couple of weeks if not longer.
Famous investor, Jim Rogers, calls the U.S. dollar 'the most flawed
currency'. The Yen is a ticking time bomb, considering the unmanageable
debt of Japan and the actions of the Swiss Central Banks led to large
bankruptcies in January, 2015.
This brings us to the final safe haven which has stood the test of time; Gold.
It has maintained its value during the last five-thousand years and the
current rise in gold during the market collapse is proof that its' safe haven
status is intact. Imagine how high gold will go when the real crisis hits the
world economies. Gold is money.
Everybody I talk to are holding unprecedented cash positions, they
are scared and do not know what to do. So, they believe the only way out
right now is to play the stock market. This is an 'illusion' as all
hope in a new bull market will not be realized. We have just experienced the
second largest bull market in history.
How high can gold go? I believe it can go as high as $5000/oz. during a
full-blown financial crisis. With a limited downside risk and huge profit
potential, readers should accumulate gold. In fact, with this week's
start of the 5th and final leg down in mining stocks we should have a great
opportunity to get long metals and miners shortly.
I will inform my subscribers about the next asset class that will go up,
as and when I see a pattern developing. I have advised many times that one
wants to set aside cash for future investments as a reserve for
liquidity and buying in volatile markets. Let me help you achieve your
financial goals.
