I had the chance recently to reconnect with Peter Grandich, Senior Market Commentator with Money Talks. It was a powerful conversation as Peter just issued a new bearish call on U.S. equities markets, which is the fourth time in his career of having done so.
Peter is known for having donned his “bear-suit” in 1987 right before the largest stock market crash in Wall Street history, as well as in 2007, only months before the 2008 financial crisis.
Now, according to Peter, financial conditions have warranted a return of the “bear-suit,” led by two primary factors—both of which are long-term positive for gold.
The most troubling sign of a major market top Peter noted during the interview, was the recent completion of, “What we like to call a megaphone [chart pattern]…It took several years to work to the top of the megaphone line. So I suspect the most likely scenarios will take several years to work to the lower end. That lower end is somewhere in the 6000 to 7000 area on the Dow. But that doesn’t mean that as it goes lower, there won’t be intermediate bear market rallies that can be substantial.” ...