U. S. Economic House of Cards Looks Forward to 2017

In spite of the fact that markets are down this morning, I now believe it inevitable that the DJIA will cross the 20,000 mark. Not because publicly-traded companies are strong. Not because those same companies have been utilizing cheap Fed monies to firm up the company’s foundation and prepare for expansion. No, none of that. It’s because new policies to be implemented by the President-elect will provide big tax cuts for corporations and the wealthy. A great portion of these new-found funds are sure to make their way into the market, giving the market a bump and enticing additional foreign investment.

None of that however, changes the basic fundamentals that the market is totally oversold and not at all prepared for growth, as would be necessary to properly facilitate the President-elect’s infrastructure expansion plans. Banks and other companies in the financial sector, already doing well in the stock market since the Presidential election, are well-positioned to take advantage of the new regulatory freedom that will permit them to create new ways to rape, pillage and be more dangerous than ever. This economic house of cards may make it into the second quarter of next year, before the cracks and deficiencies become apparent to all, but even then I think it will require a serious event to precipitate the inevitable collapse.

After 9/11, the market was closed for the remainder of the week. When the NYSE opened the following week, the first day saw a 7.1% loss and a 14% loss for that first week back. The 2008 mortgage crisis cost the DJIA more than 50% of its value over time and even the Brexit vote caused the DJIA to tumble 3.4% in response. But as this economic house of cards we’ve created continues to be piled higher, the potential for a sudden and cataclysmic collapse continues to increase. Whether its trigger is the implementation of a One World currency by the IMF, or the collapse of a major bank overextended in derivatives, or just another massive terrorist attack, this economic house of cards is well set up for a precipitous drop of epic proportions.

As the market reaches for the psychologically important level of 20,000 I implore every investor not to get caught up in the excitement and even hysteria. Rather, I’m asking you to examine your portfolio and make sure that you have an ample supply of physical precious metals on hand, the one type of commodity that can protect your assets, legacy and daily financial well-being. Buy low and sell high has rarely been so easy to accommodate as now, with the market at an all-time high and popular metals at a ten-month low. Precious metals are truly gifts that keep on giving, with immediate protection and the potential for long term appreciation.