PRECIOUS METALS VS STOCKS: Who ya got???

[Farmersfan]

http://stockcharts.com/freecharts/hi...etindexes.html



Notice that right now the US dollar is stronger than it's been in 15 years.......................

[regaleagle]

The Dow just dropped 50 pts. on Friday. The credit crunch is now being realized by all banking systems across the world. As China and other nations start feeling the crunch, and Grexit becomes only the first of many multiples of countries to go completely broke without credit, the banks will be forced to shut down and currencies around the globe will have to be reset. The credit crunch in the US will basically shut down commerce here, as it will be the reset of the dollar that breaks those that have assets based in dollars. No manufacturing, except for agriculture, will cause the US to basically become a Third World Country. You might expect money fleeing other nations for a safe haven in the US dollar on the short run, but that will be a short-lived event since the dollar is the World Reserve Currency and is basically a debt instrument. It's all about to unravel, folks.....and the Petrodollar is now DEAD with oil at $40/barrel. The Iran deal will be made with or without US participation for the rest of the ME for China and Russia.....who will eventually become the premier holders of world commerce. What you are witnessing and have been witnsessing is the final demise of King Dollar.....a planned demise that will enrich very few to the total despair of the American Middle Class and below. Even those wealthy individuals will lose 50% of their wealth if it is based in dollars. Most of the very wealthy have already moved their holdings in some way away from the dollar basis to protect it. What does this mean to those of us who have very little? It means commodities(food, supplies, clothing, everything) will become in short supply and the dollar will purchase less than it will right this minute. ANYTHING based in dollars will have less value. When the banks finally lose control, the Federal Reserve System worldwide will become meaningless as a global reset will be the only path left.....more than likely with the US settling trade in real assets and its people using a "different dollar" to transact commerce here in America. This will get ugly....very ugly....and we are close to the end of King Dollar. It is simply not sustainable, nor is it intended to be by those controlling things. The unravel when it happens will happen fast and furiously, but nobody knows exactly when. It will happen when the banks can no longer extend credit. When they can't use credit to transact business, that's when the dollar will begin its deep descent. You'll see the Markets come to halt first.....they have some automatic shut downs to close them down to stop the big drops.....but when they reopen we will see what happens next. Keep your eyes open wide and your ears tuned in between now and the end of the year.....it could happen at anytime......perhaps as early as this week upcoming. How's your PM stack looking?

[regaleagle]

In other words.....ALL assets based in dollars, even cash in the bank, will lose its value when this crash occurs. If you have real estate, it will devalue, based on its dollar valuation. If you have $100k in stocks, bonds, recievables(like me), IRA's, or anything based on the dollar.....it will lose value as the purchasing power of the almighty dollar falls. It's a complex but inevitable result that will occur, and those that have much wealth are the ones that are the most privy to what's really happening. The rest of us bottomfeeders are just unprotected, plain and simple. JadeHelm is not a drill....it is for real. I think I'll trade some of those dollars this weekend for more storable supplies while my dollars still have a decent purchasing power. Supplies that I will use and need. That does include PM's, but mainly supplies I will need and use to get by when TSHTF.....coming to your neighborhood by the end of 2015, for sure.

[regaleagle]

JadeHelm is not meant to enslave anyone.....only to control the masses when riots break out due to food and supplies shortages. It's a plan of action that will be put into effect when the system breaks down here in the US. They didn't spend billions on it for nonsensical reasons.....they know very well more than you or I about what most probably will happen. Do you actually think the world will continue to want our dollar in trade when it loses its Reserve Status? They are already trading across the globe without using dollars, and all those dollars worldwide will come home to roost.....driving its value down, down, down. There goes your purchasing power, our trade surpluses, and therefore serious problems called "shortages". This country is a consumer-based country.....no longer manufacturing.....the largest consumer nation in the world. But without the Petrodollar to support us in trade and keep the dollar strong worldwide, this whole debt system will come crashing down as a global reset takes its place. It is inevitable....end of story. That's why making preps is your best protection, and PM's will become the basis of the new World Currency paradigm. Those that are unprepared in even the smallest ways are the ones that will suffer the most. All things in moderation, I agree. But when moderation gets steamrolled, what then? For the most part we can do very little about it, but we can do some things to help ourselves. I've made my arguments FOR PM's vs Stocks in the long run, and I still stand by them. In the meantime, those of you which gambled and won in the stock market......bold and beautiful, baby! It was there to be made.....if you made the right picks. But it will not continue.....cannot continue much longer. And when it finally breaks down this go-round, there's just not enough ammunition left in the FED's arsenal to stem all the motherlode of adverse reactions that will occur because of it. Welcome to a world you have never seen in these United States. It's been brewing and covered for many decades, and its sustainability is at the end of the road now. This is what most experts across the globe now openly declare will happen.....it's just a matter of time.....and according to most the time is very short. We are at the End Game for King Dollar's supremacy, and therefore for our standard of living in the US.

[regaleagle]

The paragraph above is a typo about the Dow drop. The stock market crashed 500+ points on Friday....not 50. The 2-day total of 888 points is larger than any single day crash in US history.....just to put everything in perspective. This is a serious indicator that the unraveling is underway. The markets will always be the first indicators, then come the banks. The domino effect could cause this kind of action to get out of the control of those that have been propping up with bubbleliciousness all the QE to infinity. Quantitative Easing is another term for printing as much paper money as time will allow for.....24/7. It will have very adverse effects and when the drops come, they will be steep drops because of it.

[regaleagle]

This morning(monday) the Dow crashes again, down 1000 pts. but has rebounded by 8:30 am Central back to only 700 pts down. Still, the largest drop in US stockmarket history. Some experts are saying we can expect the markets to lose 10,000 pts. before it all shakes it.....which could take about a year. Looks like the markets will be up and down all day as volatility is very high. It could stabilize around 6% down by days end.....which would be a lot better than a full 10% loss. The problem is the markets are heavy with baby boomer retirements invested, and should this large segment pull their funds and run for safe havens, that's a majority of the money leaving. Millinealists will stay, but their market share pales by comparison to the boomers. If this market continues to drop, it could get very ugly and they may have to hit the automatic circuit breakers and shut down the markets to stop the losses in the short run. Maybe, maybe not.....we'll see what happens.

[regaleagle]

West Texas Intermediate Crude is down below $37. The markets have just be open for less than a hour, so there may be some bounce back here in America as China sparks a global selloff. That money needs to find a place to go. China's stockmarkets are like a casino compared to the US stock market, and their markets are rigged by the government. The Chinese market crash does have global implications since they are now the largest producers of goods.

[Farmersfan]

. The Dow was overvalued at 14000 before it dropped so bad in 2008 and it now sits at about 15400. Expect another fall to about 12000 soon (about 22%) and that should trigger a buying opportunity. Just my opinion though.

This is what I said 2 years ago.

[Saggy Aggie]

Before too long it's going to be time to go all in on the energy stocks.... I've got a select few in mind in particular....

Not quite there yet, need to let it bottom out first.

[Farmersfan]

Before too long it's going to be time to go all in on the energy stocks.... I've got a select few in mind in particular....

Not quite there yet, need to let it bottom out first.

For long term reliability the following stocks have returned an average of over 15% every year for the last 50 years: (including reinvestment of dividends)

Philip Morris, Abbott Labs, Bristol Myers, Phizer, Coca Cola and Merck.......... There are a lot more but these are just the ones off the top of my head.

I was also having a conversation with a buddy who kept referring to the Dow Industrial average as if it were the REAL barometer to the economic condition in America. Although the Dow is a strong measure of SHORT TERM movement in the stock world it is no longer a reliable source of long term production. These past 30 or so years the individual stocks within the Dow Industrial index have been changed and shuffled so much it can't possible represent any sort of indicator of the overall health of the stock market long term. Once they remove or add a single company that is doing well or not doing well the AVERAGE is skewed and it becomes useless........ Just some food for thought!

[Farmersfan]

For long term reliability the following stocks have returned an average of over 15% every year for the last 50 years: (including reinvestment of dividends)

Philip Morris, Abbott Labs, Bristol Myers, Phizer, Coca Cola and Merck.......... There are a lot more but these are just the ones off the top of my head.

I was also having a conversation with a buddy who kept referring to the Dow Industrial average as if it were the REAL barometer to the economic condition in America. Although the Dow is a strong measure of SHORT TERM movement in the stock world it is no longer a reliable source of long term production. These past 30 or so years the individual stocks within the Dow Industrial index have been changed and shuffled so much it can't possible represent any sort of indicator of the overall health of the stock market long term. Once they remove or add a single company that is doing well or not doing well the AVERAGE is skewed and it becomes useless........ Just some food for thought!

Perhaps I should rephrase this. These stocks have returned a yearly average of 15% or more every year they have existed. Some of them have not existed for 50 years but I'm not aware of any companies older than that can make this claim......

[ronwx5x]

Well, the week is over, the "crash" didn't last long, the banks are still open, the dollar is still hanging in there, oil is back above $40, Jade helm has retired without quelling any riots and the sky didn't fall or the baby boomers hide all their money under the mattress. Oh, and gold is down for the trailing 3 months.

[Farmersfan]

Well, the week is over, the "crash" didn't last long, the banks are still open, the dollar is still hanging in there, oil is back above $40, Jade helm has retired without quelling any riots and the sky didn't fall or the baby boomers hide all their money under the mattress. Oh, and gold is down for the trailing 3 months.

LOL, imagine that!

[Farmersfan]

I think the unprecedented daily swings are the direct result of the panic that sets in every time something happens int he world. I don't remember a time in my life where there were so many people like Regaleagle that yelled "the sky is falling" so quickly and so loudly. And the stock market is public sentiment driven more today than at any point in history..... We may still be in for some rough seas ahead but we will get through it.

[Farmersfan]

The Dow is at 16140 and the world has not come to an end. I'm remodeling my house despite the fact that armageddon is just around the corner.

Everybody look at the Dodge & Cox Stock Fund. (DODGX). If you are a mutual fund investor this is a MUST have for your portfoliio................