Batten down the hatches... The waters are about to get rough

One week away from the election - and the markets are already starting to show preparation. Heavy spikes in gold and silver today.

I believe the best position to be in is cash and metal heavy. I "topped off" last month on metals where I could.

I'm watching the market closely and waiting for the correction to go long.

 

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I bought heavy into silver last week as well. Up $.53 today alone. Wish I could have bought more but I grabbed what I could while prices were down. I expect them to be higher next year no matter who wins or looses the election.

 

There are strong signs that inflation is on a slight rise, which usually bodes well for PMs. At the same time, it puts a Fed rate hike more on the table, which would lend competition from bonds.

 

Successful internationalism makes PM's go down and equities up. Nationalism, whether American, or German, or French, or British, makes PM's go up and equities down. Nationalism looks like a better bet today than yesterday. Next Tuesday night will tell the tale. Even Mark Cuban is hedging.

 

Match in the gas tank, Boom, boom.

 

Dow "magically" corrected again - to right above 18k. If you look at my past posts - I've said it for 2 years now.

Market manipulation.

Watch that next step - it's a doozy!

 

My VelocityShares 3x Inverse Silver ETN down 8.18% just today. Now I'm down 25.69% in about 4 months.

 

I looked at a 2x reverse ETF as a possible way to play a meaningful rise in Treasury rates (you know, the one we've been waiting on for years). A clear warning scared me off -- its a device to trade on a SINGLE DAY. Just a suggestion: recheck your prospectus on that silver inverse.

 

In the interest of adding a different perspective, does anyone remember the Y2K scare? It was going to bring about apocalyptic events....governments would fall, computer databases worldwide would be destroyed, Mad Max would roam the earth, etc. Do you remember what happened? Nothing, nothing happened.

It's not the things you think are going to get you that get you; it's the things you don't see coming. For example, September 11th of 2001. For example, the financial crisis of 2007-2008 (if you owned stocks.)

Isn't it time to stop the fearmongering? It all gets so old; so very old.

I know I'm going against Mark Cuban in this instance, but I am going to go with history and behave as though the effect of the election on the markets is going to be minimal at most. The actions of the Fed will drive the markets more than the election results.

 

Prospectus=Toilet paper, Barron's also. -- Not a lot of money but look at the adj. Rate on the 3x Silver etf.

 

It WILL BE MINIMAL if the candidate Wall Street wants and has backed wins. If not, things are gonna get temporarily very nuts.

 

I'm not expecting gloom and doom or locusts... I am expecting a 20%-30% correction. At some point the debt comes due, and at some point the leverage runs out. I picture that as the apex - and starting point of the correction.

 

If the candidate Wall Street wants and has backed wins, there very well may be a relief rally considering the events of the past few days.

 

That's where I think you're wrong. I've reached the conclusion the debt never comes due. The Fed no longer is buying debt but still "everybody" in the world keeps buying it up, IN 30 YEAR MATURITIES, for crying out loud.

Debt comes due for people because people are finite. Governments are nearly perpetual. Only losing a war usually eliminates governments. The last bond holders then lose it all.

 

Dow rally, PM mini-crash.

 

Abolishing the Debt is easy. Nobody wants to do it. Oh wait, someone DID write an executive order in the 60's to abolish the FED and return the monetary power back to the U.S. Government. But as I recall, they didn't let that happen.

 

I hear Austria are selling 70 year bonds now, blows my mind 70 years! Because the debt can never become due as you say, they are experts and play the game well. The big risk is that a mistake will be made that starts a cascade effect. I like physical PM's because they are emergency insurance, very liquid and a hedge against worst case inflation. They may not be the best investment but they are very shiny also

 

Entropy applies to everything and everyone but I agree this system could very well outlive us all. Worst case IMO: More citizens are going to eventually come to realize war has been declared on them and the perception of value backing our currency will continue to erode. PM values increase slowly over time as they come to be known as the only means of protecting wealth and ergo survive a Gov controlled by criminals.

 

I agree about perpetuality of gov't bond debt. They just keep selling the bonds form time to time (generation to generation) and it keeps going. As long as the gov't has tax based revenue they'll be bond debt.

There were a few spikes in the past couple months with PMs, but I think with the election they'll be a push up, until a retraction.

 

If you look at them closely, PM's generally decline slowly, and occasionally dash upward rapidly. I don't expect that general pattern to ever change much. The key is: nobody EVER gained anything when they buy ANY asset; they only gain (or lose) when they sell it. If your ideology tells you it's never time to sell, you're already too far gone to be helped.