If I’m not mistaken, Martin Armstrong has mentioned that his PI-cycle has inverted recently and we could be looking at an even higher DOW into mid-2011 rather than the market bottom. I believe there is a minor Kress-Cycle also that peaks in 2011 before the 60 and 120-year cycles bottom together in 2014. I don’t know how accurate these cycles are at predicting stock market movement but I would keep an open mind. We’re living in Alice in Wonderland times economically and politically. So, before the end of 2014, we might be staring at a DOW of 5000 and gold of $2500. But I wouldn’t count on that to happen in 2010.

I got out of the stock market in 1999 about six months ahead of the dot.gone bust. I have not bought a stock since. We moved our retirement into the G-fund and contribute to the TSP. We have some eagles, maple leafs and British sovereigns in our possession. Additionally we keep modest maintenance amounts in Bank of America checking/savings and our short term cash is in a local credit union.

Political differences aside, I am more than a tad curious as to why you even trust the markets.

All the best,
Thrash

I do think precious metals’ prices have inflated for the last year or so because of the liquidity splurge, and I would not be surprised to see them fall temporarily when stocks (and all other asset classes) deflate as the result of the carry trade unwinding. A great buying opportunity if one can time it right, because soon afterwards I think most investors – individual investors in particular – will finally understand that gold/silver are money and not just another commodity, and will realize that it is the only safe haven left to preserve their buying power. I would expect gold/silver to then sky rocket in price singularly in terms of the prevailing currency. I believe there are enormous forces at work to provide time for the insiders to position themselves with an exit strategy (i.e., dump assets to the dupes, buy gold and duck) and to establish the conditions for a one world currency and government. Sounds crazy I know, but such things have been discussed openly for decades now by the IMF (the likely the one-currency Reserve Bank), and Presidents Bush and Obama, among many others (listen to some of the interviews on KingWorldNews.com.) All of the fiat currencies in the world today are failing and so it will seem to be the only/best solution to the whole mess. In the meantime, those with gold/silver should retain – if not gain – buying power after the dust settles. Unfortunately, I have no idea how long this will take to play out.

Here’s to a speedy resolution of the madness. Happy St. Pat’s!