Calling a Bull Market in Gold

Calling a Bull Market in Gold

$GLD, $GS

Savvy investors who read LTN’s Gold coverage are seeing the set up of a Bull market in Gold in here.

And now the Gurus are declaring that people would be wise to buy the precious Yellow metal now, but not selling their stocks.

Jim Cramer says that selling stocks now may prove to be a costly mistake.

Mr. Cramer says Fed Chairman Jerome Powell and his policy makers seemed to ignore weaknesses in the US economy and the warnings from President Trump, and hiked rates anyway.

“I have a better read on the economy than the Fed and I know they are not going to listen to me,” Mr. Cramer said.

 “I feel powerless, just like 2007, when I ranted that the Fed needed to start easing aggressively in order to stave off a financial catastrophe,” Mr. Cramer said.

“If you’re buying stocks here, … you’re making a bet that Jerome Powell will learn what I know already: that the economy’s downshifted enough … that he doesn’t need to move, [that] he knows that the next rate hike will be real bad for Main Street,” Mr. Cramer said.

The Mad Money Guru suggested buying into the Bull market in Gold. He like some mining stocks, and $GLD,the exchange-traded fund mirroring the price of Gold.

While he confessed “the odds simply do not favor stockholders,” he predicted that “when Jay Powell recognizes that he is wrong, … the market will come roaring back.”

“Sooner or later, the weakness will be undeniable and he will have to change course, which is a reason why you can own stocks,” he said. “I’m confident in my judgment, so confident that I’m sure Powell will have to reverse course, maybe in the next four months. When he does, you’ll regret selling because the market will rebound so fast.”

Mr. Cramer is not alone on his advice to own Gold.

Goldman Sachs Group (NYSE:GS) recommends an outright long gold position into next year. “If US growth slows down next year, as expected, Gold would benefit from higher demand,” analysts wrote in a note that endorsed bullion as one of its Top-10 trade ideas for commodities.

Analyst Mike Fuljenz points out that the MSMs promotion of uncertainty surrounding President Trump’s future in the White House could also actually provide a boost to the precious Yellow metal price.

If a move in the House to impeach President Trump begins next year, we may see a replay of the Y 1973-74 markets in Y 2019-20.

In Y 1973-74, the DJIA declined 45% from 1051.7 on 11 January 1973 to 577.6 on 6 December 1974. That coincided with 1 of the biggest Bull markets in gold and rare coins, he said.

“Gold more than tripled, from under $60 to over $180, while the Rare Coin CU 3000 index rose 348%, that is more than 4-fold,”

Have a terrific weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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