In the last major Dollar bear market, it crashed, top to bottom, by 40%. This brutal trading pattern for the USD in the early 2000’s brought us a 9-yr U.S. equities sideways market, a roaring commodities bull market, and one epic, colossal real estate bubble.
As you can see, between 2002 and 2010, the USD dropped severely. At the same time, real assets, commodities, especially gold, outperformed brilliantly.
But, the gold bulls mistakenly thought the party was meant to last forever. Nothing lasts forever – not ExxonMobil’s reign as the world’s largest company, not Apple’s reign at the top, nor gold’s bull market.
Between 2010 and 2017, the USD crushed the basket of foreign currencies it was faced up against, as you can see in the DXY index chart above. Gold, in the meantime, dropped like a bomb from $1,900 to $1,053, but has since resumed its uptrend.
Many other commodities have joined the ranks of gold, including oil, cobalt, copper, and zinc, but for the mining companies – the market isn’t convinced at all that it’s their time to shine.
What the market is desperately searching for is CONFIRMATION.
You know this, because you’re searching for it yourself – we want to know we’re buying cheap and within striking distance of a new bull market, and it looks like we are.
The Dollar’s grandest test is here. It has already fallen 10% and is sitting right on the brink of piercing through its 7-yr support line.
A drop below 86 will give us a full, unmistakable confirmation and will change the landscape into an inflationary nightmare overnight.
In the meantime, as the USD begins to crack, because both Japan and the European central banks are starting to tighten the noose of monetary policy as well, gold’s chart looks tasty. A beautiful upward trend and a clear support line— the next station is that elusive $1,400 mark.
It won’t take much for this to happen and, like I said last Sunday, the real key is silver. If the white metal can show signs of life, this will become the hottest sector in the world. Since you already know who the most qualified management teams are, you’ll be kicking it back, watching how all that pent-up frustration of watching shares of Netflix and its friends (Apple, Amazon, Facebook and Google) go from ridiculously-expensive to supernova-expensive, while your gold stocks couldn’t even tread above water, reverse trends completely. Suddenly, tech will be risky and mining will be popular.
Today, there are not only reasons to fear a bear market in the USD, but to fear a societal collapse.
You know, there’s something terribly wrong with America.
$13.15 trillion in household debt isn’t normal. It’s a virus, a pandemic that has put in question the true religion of the U.S. citizen. For decades, the average American has pride himself on self-sufficiency, but his reliance on debt has become his new master.
Every man and woman in the U.S. is, on average, $40,000 in debt – UNREPAYABLE.
In the next 20 years, the western world will have to forgive giant debts and wipe billions as losses. The middle-class will be obliterated, and the U.S. will join the global model of 10% wealthy, 90% poor.
Push harder than ever before to give yourself and your family a chance to thrive. Educate yourself financially and set to work to build income streams. There is no alternative.