A Bear Market Rally

I actually think the US stock market entered a stealth bear market at the beginning of 2018. But we didn't officially enter a bear market with the major averages dropping 20% or more in the fourth quarter of 2018.

 Then the Federal Reserve did exactly what I said they would do the minute the market either entered a bear territory or got close enough to do it to scare the Federal Reserve. I said from before the Fed even raised interest rates for the first time that if they ever attempted to normalize interest rates their attempt would fail that they could never complete the journey because along the way the market would break and the Federal Reserve would have to cut off the interest rate hikes and that's exactly what they did.

I also said that the initial calling off of future interest rate hikes would only create a relief rally in the market and that's what we've had. This rally is the correction. In bear markets the rises are the corrections, the opposite of a bull market. So, I think the Federal Reserve by throwing the markets this lifeline has created this bear market correction, this rally.

Trump Will Reach A Trade Deal With China

Trump will read a trade deal with China. In Peter Schiff`s opinion he has to. On a recent interview with RT.com, Peter explained why President Trump cannot afford not to have a deal. Read and watch the complete interview here: ‘Trump will reach trade deal with China, he can’t afford not to,’ Peter Schiff tells RT’s Boom Bust

Global Economic Weakness

Weakness in the global economy is not going to spill over into the U.S. economy. The U.S. economy will weaken on its own due to a host of domestic problems far greater than what overseas economies are dealing with. As the U.S. enters recession, the global economy will improve.

Trade Deal: Will The Markets Sell The News?

Since expectations of a great U.S. - China trade deal are so high, the market is poised to sell the news, particularly if the over-hyped deal does not live up to expectations. The best way for Trump to avoid disappointing markets is to delay an actual deal for as long as possible.

Precious Metals: Silver Will Rise Even More

Look at last time. Silver went up to $50 per ounce from $3 to $4 an ounce in 2000-2001. Gold went to $1,900 per ounce, but silver went to $50 per ounce. It was a much bigger percentage gain. If I am right about gold going to $5,000 to $10,000 (per ounce), I am sure the percentage gain in silver will be even bigger.

Gold Is The Last Thing You Should Be Shorting

I think this is the calm before the storm. People don’t really perceive it. Gold shorts are going to lose an incredible amount of money. That’s probably one of the most foolish things you can do. There are a lot of great things out there to short. Gold is the last thing you should be shorting. 

For central banks, gold is the safest reserve asset. It’s the only asset that is not somebody else’s liability. I think the world is going back to gold.

$5,000, $10,000 (per ounce) who knows how high it’s going to go. There is no real ceiling on the price of gold because there is no floor to the value of the dollar and other fiat currency. Gold is going to skyrocket.