The Dow Jones Index closed the week down 5.38% from its last all-time high of July 15th, a month ago. But looking at the Dow Jones as Mr Bear does in the BEV chart below, with every new all-time high registered as a 0.0%, or BEV Zero, and all other daily closings as a percentage decline from their last all-time high, comes short of displaying what has happened in the stock market since July 15th.
In this interview Max Keiser and Egon von Greyerz discuss the enormous pressures in the financial system and the coming stampede into gold. Also:
- The final phase of the currency race to zero has just started
- Massive energy in gold, built up over the last 6 years
- Gold will break its all-time high of $1920, without effort
- Gold hit new all-time highs in many currencies. Now on its way to at least $10,000 or even $50,000
- Central banks panicking over global banking system
- Negative rates – Government bonds, world’s most risky investment
- At some point, investors will dump overvalued bonds, resulting in hyperinflation and implosion of bond market
- Dow Jones stock index, will face a vicious fall very soon and in years to come
HERE IS THE INTERVIEW:
This week the Dow Jones saw above average volatility, especially early in the week, but on Friday closed only 3.92% from its last all-time high.
The Dow Jones in the table below (#10) was down 6% at Monday’s close, but recovered as the week progressed to Friday’s close, and that was the story for the rest of the indexes in the table too.
Oh my gosh, what a load of BULL I keep reading among the gurus who whine about negative headlines and complain that this unmerited negativity is the only thing that is killing the bull market. Bull.
The bellowing bulls cry every time someone runs a negative headline, “Stop, you’re breaking our bull market with your negativity. That is the only reason it is going down.” The real truth is that headlines have been enormously biased toward a BULLish narrative for the better part of a decade, and bearish headlines are only just beginning to seep in. But that is too much for the bulls: “All this negativity is killing us.”
The US stock markets are becoming more unstable, fueling mounting anxiety about what’s likely coming. After surging to new all-time-record highs in late July, stocks plunged in a sharp pullback as the US-China trade war escalated. Stock markets’ resiliency in the face of bearish news is partially determined by how companies are faring fundamentally. The big US stocks’ just-reported Q2’19 results illuminate these key indicators.
Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders. They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.
Breaking News: COMEX paper gold contracts closed on Wednesday, August 7, at $1,513, up from $1,274 on May 22. Gold bottomed at $1,045 in December 2015. The S&P 500 Index closed at a new all-time high on July 26.
Gold closed at its highest price since 2013.
What Happens Next?
- We don’t know. Gold has disappointed for years, but central banks must “inflate or die.” Expect more QE, lower interest rates and excessive political and central bank manipulations.
While motorists continue to enjoy the benefits of a longstanding supply glut in crude oil, car manufacturers are becoming increasingly worried about shortages. Not in liquid fuels, but in metals.
The automotive industry requires certain strategic, rare, and precious metals. Without them, batteries for electric cars wouldn’t function and catalytic converters for gasoline engines wouldn’t work.
Many of the metals that play a critical role in both conventional and electric vehicles now face potential supply shortfalls.