Short Central Banks QE Loose Money Policy, Go Long Gold

Posted by: : Paul EbelingPosted on: February 4, 2015 Short Central Banks QE Loose Money Policy, Go Long Gold
 

Short Central Banks QE Loose Money Policy, Go Long Gold

$GLD, $SLV, $GDXJ

Marc Faber is not impressed with central bank easing programs around the world. “If I could find a way to short central banks, that is what I would do,” he said recently.

“This is the year that people will lose confidence in central banks, mostly because of the failure of Abenomics in Japan.”

The USD hit a 7-yr high against the JPY in December and traded at 117.04 Yen last Friday.

The Big Q: how can investors bet against central banks?

“One way is to go long Gold,” Mr. Faber said. “I recommend buying physical Gold, Silver, and Platinum. If you are looking for bigger gains, I suggest either mining-company stocks or the Market Vectors Junior Gold Miners exchange-traded fund (NYSEArca:GDXJ) ”

When Gold rose 15% in 1-H of last year, the Junior Gold Miners ETF (GDXJ) jumped more than 40%. Gold traded at 1,26.30 oz Tuesday.

US stocks are “vulnerable to a major sell-off,” Mr. Faber said.

Many savvy participants are worried about economic weakness throughout the world.

Major economies are on the precipice of a recession.  Equity markets will get devastated making this the best time to short equities since the Y 2008 financial crisis.

Turmoil in financial markets, including Crude Oil’s deep dive and volatility, and China’s flagging economy will trigger the global downturn. Do not expect the European Central Bank’s QE program to save the Eurozone economy.

HeffX-LTN Analysis for GLD:  Overall Short Intermediate Long
Bullish (0.34) Bullish (0.30) Bullish (0.33) Bullish (0.39)
HeffX-LTN Analysis for GDXJ:  Overall Short Intermediate Long
Neutral (-0.08) Neutral (0.03) Neutral (-0.23) Neutral (-0.06)
HeffX-LTN Analysis for SLV:  Overall Short Intermediate Long
Bullish (0.32) Bullish (0.32) Bullish (0.25) Bullish (0.39)
HeffX-LTN Analysis for OIL:  Overall Short Intermediate Long
Bearish (-0.29) Neutral (-0.10) Neutral (-0.16) Very Bearish (-0.62)

Stay tuned…

HeffX-LTN

Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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