Jesse relays a couple of charts from Steve Williams at CyclePro, and adds one of his own. As I read it, the implication of the CyclePro charting is that the end-point for the Dow at the bottom of the bear market could be around half its present value, in a process that might take 8-10 years.
Jesse's chart relates the Dow to the price of gold, and the implication of his is a drop of some 60% - but that could be achieved by a rise in gold, as well as a fall in the Dow.
Perhaps it is time for us to be making quiet, regular withdrawals from the cashpoint and building up a stash of truly instant-access cash. I shall start today.
And when inflation hits?
Say you end up with a month's worth of cash in hand. Where would you hide it? Burglers know all the hiding places, don't they?
ReplyDeleteBuy cat food.
ReplyDelete1. Office locker. Offices are better protected and who'd think?
ReplyDelete2. No official cat at the moment, though we have an out-of-door relief who's trying to get his paws under our table.
I feel such an idiot, hiding away a stash of Euros and £, but I've done it just the same. What finally convinced me was the profusion of deposit "guarantees" eminating from just about every government on the planet recently.
ReplyDeleteI asked myself if this statement made any sense, "If all of our money is now guaranteed, guarantees which today must cover just about all of the savings of the 99%+ of those of us lucky enough not to be multi-millionaires, then the logical conclusion is that there can never again be a financial collapse thanks to government decree."
This is obvious lunacy designed to stop the children panicking, and the only logical conclusion I could draw was that the guarantees must all be worthless.
I see now why my grandad's generation often hid their money under the mattress. I used to think that they were mad, but of course it's us who are mad. Thinking that we are so clever and so special that the laws of economics don't apply to our generation.
"Perhaps it is time for us to be making quiet, regular withdrawals .."
ReplyDeleteFunny you should say that.
Long life and canned goods while not actually attractive, might be a fairly shrewd purchase too at the moment.
How long before the vilification of 'horders' gains currency in the media?