If you're convinced the market is a rigged carnival game, then the correct action would be to not play the game. I think the market can be irrational or even manipulated in the short term, but true valuations are always fleshed out in the long run and at times that process can be painful. This is why the overwhelming majority of my investments are diversified in low cost indexed ETFs in which I have a long time horizon. That has proven over time to be a winning strategy to steadily build wealth.
I definitely still like physical gold and silver. They are two commodities that will still be wise to hold even if we hit a hyper deflationary event. They will suffer from short term asset flushes during that time. But overall, I would use them as insurance against an eventual failing currency...when (and if) that time comes. I'm going to be looking to build my position at some point...I just hope gold isn't 10k an ounce by that time....lol
Yeah. It's a relative strength chart. They are great for finding sentiment and divergences typically give you early signs and signals of potential turns on an absolute basis in those instruments. Unfortunately right now utilities and the dollar are showing the strongest trends on a relative basis to equities. Commodities surely ripped though from that bottom in your chart on an updated time frame.
stevenvanmetre.com
I only have exposure to gold and silver via ETF, but after seeing what has happened to Russia and to a lesser extent Canadian protesters, I see value in having a small stash of gold coins that are completely outside of our current monetary system that I could easily redeem at a local coin shop or jeweler for spot price.
There are definitely some right now that are firmly in the camp of being in a cyclical bear right now within a secular bull....which is even hard to argue according to the charts. But of course, there are always secular turns like the 70s or 2000 to 2008 that see times of sideways action or secular bear markets. I'm just in the camp that we might have entered one of those periods or worse..with cyclical bull markets along the way. Regardless of direction, it's going to be a highly volatile and tough market to navigate for some time. IMO.
What are you personally doing?
Well, I trade. So no buy and hold for me anymore really outside of my 401k which was in the long bond. Still intermediate term bullish there though....along with the dollar.
The bottom of the chart is a 12 month ROC (rate of change/momentum) indicator that is measuring the monthly performance of WTIC. Its basically measuring the moves of oil when we have extremely violent momentum to the upside or downside and is pointing to correlation with crashes when it reaches the extremes in the indicator. (Blue arrows)
Any recommendations on the best way to buy physical gold? I've never done it before but have been thinking that it might be a good idea due to world events too.
Boeing is a mess lately too. Recently had a big failure with costs of space equipment to Nasa.
I also like ITM trading on YT. They are a physical gold and silver dealer. Been in biz since the 90s I believe. Lynette is their lead market strategist and she is a little too gold bug for me. But her overall strategy is pretty sound if you are more into the 'metals being real money' boat IMO.
