2 – 6 – 2018
Volatility has returned to the stock market. The Dow Jones Industrial average posted losses on consecutive days last week, culminating in the 1,175 point drop we saw on Monday. You can’t blame this on Philadelphia’s Super Bowl victory, or on Jay Powell, the new Chairman of the Federal Reserve. Monday, February 5th, the day of the record breaking decline, was his first official day at the position previously held by Janet Yellen. No, the need for a correction in the soaring equities has been almost unanimously predicted by financial analysts, but the question remains: Is this the beginning of the big crash that popular writers like Jim Rickards, Mike Maloney, and several others have been predicting?
It is too early to tell, but many metals investors are watching these movements closely. A continued drop in the equities will push major money into gold and other commodities, and push up the prices. This week may be the last great opportunity to secure a position in metals before the next big Bull Run. This morning the markets are down another .5%, all we can do is watch and wait…
“There is no need to worry. The high tide of prosperity will continue.”
—Andrew W. Mellon, Secretary of the Treasury – September, 1929