I'm trying to think of the last time the Fed had an emergency weekend announcement. I can only think of the one on October 6, 1979. This was perhaps the most important announcement in Fed history. For those who understood it, it marked the end of the inflationary 1970s, and put into place the building blocks of the stock and bond bull markets that would be soon beginning, and may still be with us. (Or are they in the proc...
Gold is in consolidation. And it’s looking unbelievably strong. I have rarely been this optimistic: a more bullish-looking asset. And I have rarely seen a more optimistic consolidation! I'd have to go way back to the great days of the 1970s to remember something like this.
There will be a time for TBF, but not now. The longer the maturity of any bond, the more volatile the price, up or down. We can see this with Austria's 100-year bond. [That 100 is no misprint]. The yield is down below 1% now. The chart below shows this. I can only call it "insane"!
It's no secret that all paper monies have lost value against gold since this most recent bull market began in early 2001. Some currencies, however, have lost much more than others. A recent table marking gold's path against 37 major currencies shows the wide variance over this period.
From a reader:
"If the U.S. were to lose its reserve status, which I think is in the process of happening... what would be some of the repercussions? How would this affect the average Joe? What happened to Britain when the pound lost its status? And do you agree it would then result in a very steep drop in the U.S. dollar?"
THIS is what a bear market bottom looks like! I'm not saying with 100% certainty that we've turned the corner. It is just that THIS is what a bottom looks like... and I'm talking from nearly half a century experience in all sorts of asset classes.