Gold Price Forecast – Global Great Depression by 2022?
As an analyst, I am constantly on the lookout for waves of villains and black swan events. In my experience, it is the crisis that we don't see coming that hurts us most. In the past few months I've seen and heard a few things that concern me now. I will describe them below, and you can decide for yourself if they are worth considering.
THE ROBINHOOD MAD
Buying and selling stocks has never been easier. Through Robinhood, investors (mainly Millennials) buy and sell stocks easily and commission-free. Users are encouraged to sign up friends and family to receive free shares. I believe this madness created a bubble in stocks like Tesla and other electric vehicle games.
TRADING IS EASY
Since August I have had several conversations with (mostly younger) people about stocks - the majority have never spoken about markets. I found out that one is actively trading during the day from his phone. He buys popular stocks and when he makes $ 1,000 he sells. Another boasted of a profit of over 50% on cruise lines. Some went so far as to show me their phones and how much they made. One family member went on to describe how they wanted to learn options.
Virtually anyone who has bought stocks after March is extremely profitable. People who have never acted before do so actively. Retailers are entering the options market like never before - I was very concerned about that. Either all of these people are financial geniuses or they are wiped out by an unexpected market event.
Even the pros are bullish. According to thedailyshot.com, the Financial Twitter Sentiment Index has seen a remarkable upward movement - even permanent bears have turned bullish! Is everyone right, or should we consider this an indicator to the contrary?
MARTIN ARMSTRONG WARNING
Respected analyst Martin Armstrong of Armstrong Economics recently stated in an interview the potential for revolution, civil war and a global depression by 2022. The interview, titled We're on the road to revolution, was broadcast on Financial Sense on November 19, 2020.
In other words, Mr Armstrong sees the potential for violent protests and blood on the streets through April or May 2021, possibly due to continued lockdowns. That's right - he believes lockdowns could resume in 2021 via another (possibly evolving coronavirus). From there we could see the beginnings of the revolution in some countries. By 2022, global GDP could fall 50% from its pre-COVID high. I've been listening to Mr. Armstrong for years. I think he's more right than wrong.
In this terrible scenario, precious metals would likely explode higher (I'm talking). The dollar could soar as an escape to safety, especially if the revolution first starts overseas. Big money is parked in blue chip stocks. And cryptocurrencies could bounce back as investors try to remove money from their respective countries.
In summary, several warning signs have my attention. Maybe there is nothing to worry about and the economy will continue to recover. But what we have in the eye of the storm and it will get worse in 2021 - how many people are expecting that? Anyway, I think it's worth considering the potential for a very turbulent 2021 and 2022. At least think about it.
In our economic calendar you will find all economic events of today.
AG Thorson is a registered CMT and an expert in technical analysis. He believes we are in the final stages of a global debt super cycle. He publishes daily updates for premium members. More information can be found here.
This article was originally published on FX Empire
More from FXEMPIRE:
Crude Oil Price Forecast - Crude Oil waits relatively quietly for OPEC
Technical Analysis of E-mini NASDAQ-100 Index (NQ) Futures - Higher highs, higher lows needed to keep the rally going
European stocks: Brexit, COVID-19 vaccine updates and economic data in focus
Daily USD / CAD Forecast - US Dollar slips to new lows
The focus is shifting to U.S. non-farm payrolls, Stimulus Deal, and Pfizer's vaccine hook
USD / JPY Price Prediction - US Dollar Continues to Fall
Scientist findings in Tanzania show how ancient humans used tools 2 million years ago
How did the Packers fare against the Buccaneers and Saints in 2020?
India 161-4 at lunch, day three of 4th test vs Australia
Lily Allen says she decided to get sober after she considered taking heroin while on tour with Miley Cyrus
U.S. COVID-19 vaccine supplies strain to meet wider eligibility, second doses
Dana White after UFC on ABC 1: Alexander Volkanovski can’t deny Max Holloway deserves trilogy