How Much Squeezing Can This Bull Market Take?

Talk of tariffs and trade wars has not managed to derail the Dollar’s continuing rise. An upbeat economic presentation was made to Congress yesterday, by Fed Chairman Jerome Powell. The dollar and stock market rose, while precious metals hid in the corner, like a beaten stepchild. My question is very simple. What possesses an investor to disregard the cardinal rule in Business 101, which is to buy low and sell high? What causes an entire class of intelligent investors to suddenly become lemmings and stubbornly be “all in” and clinging to the slipping potential of another 10% market rise? Especially, in the face of massive concerns being expressed by just about every economist, in every corner of the financial world? All indications are that the market is in for a serious correction, if not an outright collapse.

When this market makes a true correction, of any size, it won’t be a prolonged event. It’s going to happen quickly and unless I miss my guess, precipitously. Are investors really thinking that they’re going to see the collapse coming? That they’re going to pick up the phone, call their broker, order a complete liquidation and somehow get out of the market with their skin still attached? Wow! If that’s your plan, good luck with that. Meanwhile, after yesterday’s drop, silver is nearly 68% below its high and gold is almost 36% below its high. When everything else goes south, precious metals will shine their brightest. Are you prepared for the coming reversal of fortune?

Global economic growth is grinding to a halt. Superpowers are quickly becoming less tolerant and Australia and China seem poised for a South Seas conflict if the two don’t stop posturing and instead start talking. It’s a time of distinct uncertainty and yet investors seem as confident as ever that out long-in-the-tooth bull market is good ad infinitum. At yesterday’s close, the Dow Jones Industrial Average closed just over 1% higher than its 2017 close. In other words, the stock market is up just 1% in nearly 7 months of operation during 2018. Nevertheless, it’s still down just under 6% from its January 26, 2018 high close of 26,616.71

There aren’t many economic analysts out there suggesting that the stock market can continue to eke out gains of any size, but there is a long and growing list suggesting that the long-awaited ‘correction’ is coming, as early as next month. Regardless, there is no good reason to ignore the time-tested value of physical precious metals as a hedge against catastrophic. If anything, this is the time to double down on coverage, simply due to the absurdly low prices of precious metals today. Call the professionals at American Bullion for assistance at (800) 653-4653. But don’t get caught without a chair when the music stops!