When US Stock Market Crashes Buy Gold
The comments below are an edited and abridged synopsis of an article by David Brady
Brady outlines the endgame for the dollar, and the likely beginning of the explosive rally for gold. Simply put: When the US stock market crashes, buy gold.
More specifically, when the S&P 500 has fallen 20-30%, buy gold, because the ‘Fed Put’ will soon be exercised. The Fed will reverse policy to stimulus on steroids. The dollar rallied from April 2008 and peaked in March 2009, when stocks bottomed out—the same time the Fed announced QE1. Then the dollar fell. It is not unreasonable to expect the same to happen this time around. Gold bottomed in October 2008, as stocks plummeted and then soared 280% to greater than 1,900 over the next 3 years, as QE1 and QE2 were underway.
Brady expects a crash because of quantitative tightening and budget deficits, the global punchbowl being removed, and trade wars.
This article is directly related to the prospects for gold in the near future, because a stock market crash will trigger a Fed reversal in policy to ‘monetary insanity on steroids’ and a peak in the dollar. This will be tremendously bullish for gold, other precious metals, commodities, bonds and stocks. Everything will go up, except the dollar.
China and Russia are loading up on physical gold; Brady advises following the smart money.