QUESTION: Hi Mr. Armstrong …
In the Metals report you mentioned that the further Gold fell, the greater the rally would be thereafter.
So don’t the same principles apply to what is currently happening in equities? Support areas are being breached, but don’t a lot of investors watch the same areas so the “heard” mentality is taking over for now? These investors are in panic mode
It seems a huge, very quick rally can occur any time now, as nothing has really changed regarding capital flows, etc. so perhaps a buying opportunity is taking place now?
Thank You !
AH
ANSWER: Normally this would be true. The Global Market Watch proves that patterns are universal across all markets. The difference between equities this time and gold, the latter is retail while the former is at historic lows for retail participation – very strange. There is no bubble in equities despite the high levels. Therefore, we appear to be more in a preparation stage for a Phase Transition that is required to get the bubble.
Eventually, all private assets will align against the Sovereign Debt Crisis. That is historically just how it all fits together.
