by David Engstrom:
Whether you are a gold bug or not, there are some irrefutable facts to consider about today’s markets. For weeks we have heard, “Dow in record territory” as though that is the universal signal to buy, buy, buy! At the same time, gold has been cast as the Rodney Dangerfield of investing – it gets no respect from the mainstream media. A look at the facts should cause anyone to take pause and consider the truth.
Since the beginning of this year, gold has never traded in negative territory. On the first trading day of 2014, gold began to rise from $1220 an ounce. Only once did it threaten to trade down for the year, but, did not. Even today, with gold off its yearly high, it still trades up 6% on the year.
Now, this will shock you. Not once this year, was the Dow up 6%. Even at record highs, which we heard about for weeks, the Dow was barely up 4%. If we reason, that little voice tells us anything at record highs is in danger of a correction if not a total reversal in trend. Throw in debt levels 80% higher than we had prior to 2008 and concern should rule the day.
Remember that old saying? “Kicking the can down the road?” I find it a little crazy to think the can will not be kicked to the end of the road and stocks can continue to ignore the fact that each day we move closer and closer to a “Crash Point.” I have referred to the Crash Point in ...