-- Posted Friday, 5 August 2011 | | Disqus

Rick’s Picks

Friday, August 5, 2011

“Phenomenally accurate forecasts”

An interesting day, for sure. But a surprise?  It shouldn’t have been, since even the Guvvamint’s statisticians and spinmeisters seem to have noticed that The Great Recession is back with a vengeance. Under the circumstances, anyone so stupid as to be loaded to the gills with stocks yesterday deserved the full brunt of the devastation.  The stock market’s collapse surely didn’t take us by surprise. The night before, under the headline “This Rally Is….Doomed!” we’d disseminated the following alert to subscribers: “The strong bounce off yesterday’s apparently oversold low is a fraud, and it is doomed, so we’ll have a very strong incentive to short every… rally target we can find…”  We’d also made the following declaration in commentary published here yesterday:  “Lest any of our own readers be shrouded by the fog of the Mainstream Media’s coverage of the financial markets and global economy, we’ll state for the record that the technical evidence is overwhelming that the Mother of All Bear Rallies begun in March of 2009 is over.” 

If we sound positively gleeful that the market appears, finally, to be having a massive heart attack, it’s because stocks have long been the captive of quasi-criminal forces that could only charitably be described as pond scum.  The good news is that, when the Dow is trading 10,000 points lower in a few years, no longer doing the bidding of high-frequency traders, mountebanks, thimble-riggers, thieves and arse bandits, that will set the stage for a true bull market that will run for a generation. At that point, with “money” no longer available interest-free and in practically unlimited quantities for rampant speculation, stocks will once again rise on their individual merits, savings will have a purpose, and capital will seek out its most productive uses. We hope we’re around when all of it comes to pass, as it eventually shall.

What About Gold?

Meanwhile, the implosion of stocks raises the question of whether deflation has at last overwhelmed the central banks’ increasingly desperate attempts at stimulus. We think the answer is yes and that deflation will rule the global financial system for the foreseeable future.  A related question is whether gold and silver have made their final top. It’s possible, but we strongly doubt it, since billions of people in this world have yet to understand that the paper money in their wallets, as well as the digital money in their bank accounts, is absolutely worthless. When this epiphany finally hits,  it will trigger the hyperinflation that has long been destined to send bullion prices soaring to perhaps unimagined heights. In the meantime, hard cash, worthless though it be, actually will be king in the absence of credit.  Credit will be available in theory, but at exorbitant real rates and only with adequate collateral. Just what will pass for collateral is a question that remains open to speculation.  In any event, we will continue to track gold and silver in particular more closely than ever, since this is a forecast that we absolutely have to get right. You can follow our forecasts in real time by taking a  free trial subscription  to Rick’s Picks. It will also give you access to the 24/7 chat room, to detailed trading “touts,” and to impromptu online trading-strategy sessions like the one held (and recorded: Staying Ahead of the Crash) yesterday.

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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indication of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts.  Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2011, Rick Ackerman. All Rights Reserved. www.rickackerman.com 

-- Posted Friday, 5 August 2011 | Digg This Article | Source: GoldSeek.com

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