... get ready for a big stock market and industrial commodities rally later in the year after QE maneuvers in Europe and the U.S.
We expect regional turmoil to last for quite a while, and this opinion is one reason why we still believe that oil can move to $150 per barrel. Whatever the level when the disturbances begin, you can bet that oil will move higher.
Gold has good long term prospects, but short term it is definitely vulnerable to continuing volatility. We have been dismayed by the degree of overconfidence among some gold investors. For example, we heard from several gold buyers between August 15 and 22nd; when we suggested to them that gold could have a violent correction at any time they scoffed. They were deluding themselves.
As any experienced investor knows, gold (and every other investment) is vulnerable to corrections, and as gold rises to new highs, corrections will become more frequent and more violent.
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