“The economic and financial condition of the U.S. and global economy is similar to that of 2008, although I think now it’s a lot worse than it was back then…the ‘gravity’ of true fundamentals has finally gotten ahold of stocks…”
Fundamentals ultimately drive value. In terms of the fundamentals, financial assets – stocks, bonds, real estate – are extremely overvalued. The precious metals sector right now is extremely cheap relative to fundamentals.
Don’t be fooled into thinking that the stock market bounce that started the day after Christmas was the end of the “bear market,” as Jim Cramer is asserting. Bear markets last a lot longer than four weeks. A bear market in financial assets is just getting started. At the same time, the bull market cycle in gold, silver and mining stocks that began in late 2015 with a 250% run-up in GDX over the next 8 months is ready to resume after using just over 2 years to effect a 38% pullback from the sharp in 2016.
Elijah Johnson invited me to discuss the economy, stock market and precious metals sector on his Silver Doctor’s podcast:
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If you are interested in ideas for taking advantage of the inevitable systemic reset that will hit the U.S. financial and economic system, check out either of these newsletters: Short Seller’s Journal information and more about the Mining Stock Journal here: Mining Stock Journal information.