2015: A Year of Financial Turmoil and Chaos
All Heck Breaking Loose. What to Do …
Money and Markets Newsletter – January 21, 2015 – by Larry Edleson
The Dow Jones Industrials have had three wild swings already [this year], first plunging more than 700 points, then rallying more than 600, and then swooning nearly another 700 points. The swings in other indices such as the S&P 500 and the Nasdaq have also been off the charts. We’ve seen gold rally more than $110, from a low of roughly $1,167 on Jan. 2 to a recent high of $1,282 as I pen this column … and similar explosive moves up in silver and platinum. And while gold and silver were rallying, we’ve also seen the dollar explode higher, to its highest level in nearly nine years. As the euro currency, an ill-fated medium of exchange, continued to plummet virtually non-stop.
Pressuring the Swiss National Bank to abandon its peg to the euro, incurring hundreds of billions of losses among hedge funds, forex dealers, central banks and more. All the while, the price of crude oil has been plunging anew to a low of $44.20, and swinging wildly since. These moves, as extraordinary as they are, are merely the opening act of a year that will go down in history. A year that will see governments collapse … currencies thrown into turmoil … the current monetary system begin to break apart at the seams … as the back wall of the financial hurricane that began in 2007 begins to hit all of us. At stake is not only your financial survival, but also the most profitable opportunities you have ever seen.
I have forewarned you. It’s all starting to happen, in spades, and you better be prepared for it, for what you have already seen in three short weeks is, I repeat, merely the prelude to complete pandemonium and chaos…
In the weeks and months ahead you will see:
The price of oil rally a tad, then plunge to below $40, to as low as $30, before bottoming.
The dollar gain incredible strength as Europe continues its descent into an abyss.
Wild swings in stock markets around the globe, with the Dow Industrials leading the way, first down, to as low as 14,300 … then soaring like an eagle thereafter.
Gold and silver’s rally continue a bit longer, but then the metals will plunge too in a deflationary spiral, to new record lows for their current bear markets.
And then, just like the Dow Industrials, they will rocket higher yet again, and begin a new bull market that will eventually take gold to more than $5,000 an ounce, silver to more than $125.
And in what will prove to be the biggest bubble ever to have burst, later this year you will see the sovereign debt markets of Europe and the United States literally implode, as investors everywhere begin to question the leadership of the world’s two biggest Western economies.
Right now, I want you to be aware of the bigger picture strategies. I will be looking at …
- Inverse ETFs on the main stock indices to catch the inevitable correction that is now starting to unfold. Then, when the timing is right, I will take those anticipated profits and look to reinvest them near the bottom of the stock market correction. In leveraged ETFs and blue chip type stocks, to profit from the Dow’s inevitable rise to new highs, to well past Dow 31,000 by the end of 2016.
- A similar strategy for gold and silver, trading inverse ETFs to capture the potential profits on their next — and final — declines. And then reinvest those winning proceeds into long positions, to capture gold and silver’s coming new bull markets.
- I will remain dollar bullish, adding to long ETF positions in the dollar and short position in the euro, via inverse ETFs on the ill-fated currency.
- I will load up on cream-of-the-crop mining shares, at the right time.
- And I will look for one opportunity after another in Asian markets, where despite all you hear, Asian economies remain robust, offering you tremendous profits.
And 6, last but not least, I will prepare for the biggest bust of all time, a collapse of sovereign bond markets in Europe and the United States, and the beginning of the end of “Western style socialism.”
The collapse of entitlement programs, federal pensions, government handouts, and more, which in turn will light the fires of the war cycles I have been warning you about, the ramping up of political blame and finger-pointing within and between nations, and all that it entails, in what I call the 21st century version of World War III which Pope Francis has already acknowledged is here …
And includes everything from military conflict, to domestic and international terrorism, to more spying on everything you do, to cyber warfare, to trade and currency wars, and more.
Stay safe, stay protected, and be open to mega profits.