DJI VS GOLD
You probably noticed news media screaming about upcoming recession recently... Weird right? Sure is, because that's not exactly what is happening behind the scenes. In reality we are witnessing what is called 'economic reset' also known as financial systems reset. That means that even though recession like impacts are likely, you're not exactly going to see a full follow through this time.
Sure it's easy to make comparisons towards 2008 and say that due to negative yields and other indications that we will have 2008 on steroids... While those people would be correct in a way, we see it a bit differently.
Crypto currency was not invented by mistake and released in the form of Bitcoin in 2008. It was created to 'beta test' a new type of economic system which would result in a 'levels playing field worldwide' and ensure near instant money transfers from point A to point B, eliminating third parties while at the same time increasing control over money flow. I'm not here to suggest that Bitcoin or some crypto coin will be used as global currency in near future and all that, but I am here to suggest that blockchain on which cryptocurrencies run today, might very well be used in the next generation of our global financial systems.
I'll dive deeper into that sometime in the future again, but let me quickly get back to the chart itself...
What do you see there?
On chart we see pre 2008 and mid 2008 crash money flowing out of stocks and into precious metals such as Gold. We then observe that same money slowly flow out during the 2011 - 2015 Mega stock market bull run but then we see Gold begin stabilizing around March 2016 and resuming the uptrend going into today, while the stock market slowly comes to a stall as we see an increase in the trade wars, negative yields, increase in debt and continued world political instability. What does all that mean? It means that the rich are slowly but surely migrating from the traditional stock market into precious metals ones again such as Gold. That also indicates that they potentially see more profits being made in Gold value rise vs the traditional stock markets. We have also heard IMF, World Bank and some of the G20 governments indicate that economic 'reset' is coming and we've heard some leaders express worry in regards to current economic state. Although it might be difficult to wrap your head around exactly what is going on and what is to come, it's surely alarming to see some of the top stock holders such as Warren Buffett unloading on the market while telling the average investor to continue buying.
Conclusion? Be ready for a transition between the old and the new economic/financial systems. There's no guarantee that we will see a shift or a price correlation in the traditional stock markets however its nearly safe to say that something is going to move sooner than later and to be prepared financially.
I will expand more on the upcoming resets soon, but at this time keep in mind that I am not a financial advisor, do not invest what you're not able to afford to lose.