While the Dow Jones Index and broader markets are recovering from their lows set on Friday, the worst is still yet to come. Investors need to realize that stock market indexes don’t fall in a straight line. Also, there is also the possibility that the Dow Jones Index could surpass its previous high of 26,600 points. Only time will tell.
However, the leverage, margin and insane valuations in the markets are still way out of whack. Just because the Dow Jones Index has added 1,200 points from its lows in early Friday trading, it is still 2,000 points below its peak of 26,600. Furthermore, when the Dow Jones peaked at 14,100 points in 2007, it took six months and three different spikes higher before the index started to fall off a cliff in 2008.
For example, the Dow Jones Index hit three peaks in 2007:
- July 2007 = 13,900 points
- Oct 2007 = 14,100 points
- Dec 2007 13,600 points
Over that six month period in 2007, the Dow Jones Index rose and fell three different times. The biggest percentage drop was between July 2007 and Oct 2007, at nearly 10%. However, the Dow Jones index peaks were at the most, 3.5% from their high of 14,100. Moreover, it took six months for the Dow Jones Index to finally head lower on a sustained basis and it wasn’t until nearly a year later in Oct 2008 did the market finally crash.
So, if you think the Dow Jones correction is over, then you are going to be in for a rude awakening.
I put together my analysis of the Dow Jones Index and the Silver Price Trend in my newest YouTube video:
Not only do I discuss the Dow Jones Index and the Silver Price, but I also explain what is going on in the oil and housing market. Unfortunately, I believe we are sitting on top of the biggest bubble economy in history. While it is impossible to know when the EXACT TOP will be in, the higher we go from here, the bigger the bubble becomes.
To tell you the truth, I would be amazed to see the Dow Jones Index surpass its previous high of 26,600. But, there is a chance that it COULD HAPPEN. But again, the higher the Dow Jones Index goes…, the bigger the inevitable fall.
In the video, I also discuss the delusionary and superficial analysis that the U.S. Housing Market is not in a Bubble. In this chart below, it explains that if the Housing Boom and Bust were removed from the equation and we used a 3.6% annual historical appreciation rate, the median home price would be about the same:
Of course, this is pure BOLLOCKS because compound interest over a long period of time is impossible. Furthermore, you can’t enjoy rising appreciation if oil production growth slows or declines. For some strange reason, the analysts don’t factor that important TIDBIT into their forecasts.
I want to take this time to thank those followers who have supported my work by becoming MEMBERS on my site or PATREON. Your support is greatly appreciated so I can continue to put out the information, data, and analysis for the public benefit.
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What happens to gold, silver if stock market crashes by Jeff Clark.
Pretty indisputable article and looks like Silver sucks 80% of time over numerous historical crashes. Gold better
Trouble with gold, too energy intense for 95% of transactions, attracts too much attention, and more likely to have gold sales or barter banned as opposed to silver. Not worth buying imo.
Thoughts?
I’m almost certain when the big crash comes then there will be a financial vortex into which everything succumbs. Precious metals will be no exception as extreme leverage and margin requirements for other assets force market participants to raise cash. Of course that would be the moment to buy PM’s but things may move that fast it may not be possible. Whether TPTB choose that moment to end COMEX and price suppression remains to be seen, but I’d say it’s likely. Then we’re off to the new paradigm, whatever that may be…
You are not taking into account that by then the premiums on physical gold & silver will be extremely high and if there will be avialabilty
Think local. Globalism is the problem with the world. It requires too much energy to sustain much longer. Energy is currently leveraged so far into the future it is beyond understanding for most. Try thinking about living within 30 miles of your current home…or less. Can you get the things you need? Can you protect yourself, your family and what you have?
Better yet, become self-sufficient. Food, water, shelter, protection…the basics. People will figure out how to transact if they don’t know already. Some of us know how to negotiate for items, business, etc. Better learn how.
Real, tangible items. That is what will have value to survive economic and civil turmoil.
Jeff Clark lol!, isn’t he one of numerous Standsberry clowns. Those dbags are both elitist and globalists. No way they last.
Frank. No one is coming to save you.
Moon shots coming for PM’s and yes certain cryptos because folks will be looking for anything which is NOT a Wall St type paper asset.
Moon shots because none of the above are easy markets to enter, talking physical PMs of course. Takes a while to get your hands on any sizeable amount of physical.
And if you haven’t as yet dabbled in cryptos, it’s not an easy process even when activity is light. One can debate or argue until one is blue in the face about the merits of cryptos, but what really matters is what does the millinial investing public think.
“One can debate or argue until one is blue in the face about the merits of cryptos, but what really matters is what does the millinial investing public think.”
What % of millenials have any leftover $ to invest after rent, health insurance premiums & deductibles, car payment, gasoline, and car maintenance, insurance [car, renter’s,etc.] food, educational loan payments, clothing, entertainment…
They may have been talked into the company 401k if they have a company job. That’s relatively painless [deductions from paycheck]. What currency remains…are they going to save hard to invest in anything else, or spend now.
Just wondering how it will get to more than a small % having funds to put into cryptos or PM’s [which they REALLY know nothing/have heard nothing about].
Yes, I agree the future is rather bleak for those living beyond their means now.
What do you call “sizeable” and how long to aquire? Why can’t one just write a check once and be done?
Well “sizeable” would be relative and timely. If the future holds 5-10x moon shots for PMs and or cryptos, then the size would be much smaller if positions are taken before the moon shot.
However if one waits until after, one might fine the physical PMs at no offer and crypto exchanges over loaded.
If over the last three yrs a millennial had filled a coffee thermos at home rather than buying one cup at Stary Buckle every day and invested the savings in cryptos, he most likely would have a sizeable position in cryptos.
Just another thought, we just witnessed a 60% correction in cryptos and yet no panic, the sky did not fall.
Where do you suppose we would be if the Dow had just dropped 60% in just a few weeks.
Granted someday when cryptos have the mkt cap of today’s Dow, a huge correction will hurt, but the point is which asset class is over bought? Which is a bubble? Which is better place to invest, a space on its top, or a space building a stronger base?
Steve,
Your analysis gets more sophisticated with every post. The enclosed videos are brilliant. Anyone that has not got the message is clearly tone deaf. I am buying silver in all forms as fast as my meager budget allows.
Thanks for the heads up.
SteveW
Interesting, Fiat agnostic. Article I mentioned beginning of this thread assumes the Comex stays up and I tend to assume that also. If Comex destroyed that is a major crash indeed and, as you say, beginning of new paradigm.
The end of US dollar would have to follow within a year, would it not? And some kind of bankrupt police state banana republic, if anything exists at all.
Thing is it only makes sense to prepare for the level of collapse you have a chance of surviving. And doubt anyone on this page can survive anything worse. So i’m just judging the worth of pm against something less threatening then mass starvation, Fema camps and genocide.
Frank – I suspect there is one last vain attempt to rescue the system before it heads to collapse anyway. Price suppression of PM’s has been an intrinsic part of QE as all major currencies declined simultaneously and imperceptibly because the ‘canaries in the goldmine’ of gold and silver were commensurately suppressed. Whether we head peacefully to IMF SDR’s involving massively revalued gold or a major US$ crisis with war remains to be seen. Either way it will be abundantly clear that currencies and debt require massive upheavel and the masquerade that was COMEX will cease to be relevant. Who knows what is planned or what may transpire but debt jubilees and the end of the US dollar are credible possibilities. Taking the US through a form of bankruptcy could be part of Trump’s plan to ‘Make America Great Again’. Interesting times…
Steve: Why must you preach doom & gloom? You say there are “insane evaluations in the market.”
I own 7 stocks. The largest PE is 16 and lowest is 12. What is insane about that. And they all pay me a 5.75+% dividend and each year they increased the divvy by 3 to 9%. Why scare everyone? Should we listen to Morgan, Schiff, Cloud and the like buying silver these past 7 years and losing money every year? I’m going to put your article in archives with all your articles that had no affect on silver. So far Steve, since 2011 I’ve not only doubled+ my stock holdings but I got a 5.75% average dividend yield to boot. From silver, since my average was $22 I not only didn’t make anything these past 7 years but I lose $8 per ounce if I sell. Why on earth didn’t you preach doom and gloom on those who buy silver? Stocks may correct but silver crashed.
Joe Lindell,
Please continue rationalizing the value of the stock market. I don’t have a problem with that. However, let me know how well the market has treated your investments in two years.
Happy trading,
steve
If I’m rationalizing, what are you doing? In 2 more years I will make 5.65%
dividends each year. If the market crashes 50% I’m back to where I started. Why is it you don’t speak of silver? I’m down 33%. Will silver be $20 in 2 years? If so after a total of 9 years I would still lose $20,000 on my 10,000 ounces. I foolishly bought listening to you, Cloud, Butler, Morgan, Schiff and Maloney. You guys should be ashamed. As you know my grand children inherit the
silver so in that sense it is what it is.
Lastmanstanding– The charts in Clark article showing how silver has performed compared to Gold in major crashes standby themselves, and it’s irrelevant what kind of clown Jeff Clark is as you say. Everyone running a site in pm subject could be called a clown and is not trustworthy. Show me anyone who is knowledgeable about this who is not also trying to sell it, so your criticism is irrelevant.
Deal with apparent fact, not bluster, and comment on it here. The pro silver over gold has been covered to death. here is an alternate perspective and you can’t read or think about it?
There are a few reasons why the GS ratio argument could be slanted to favor silver. And industrial uses,blah blah, blah. Like one is most dealers make lot more money storing silver then Gold, and few people have endless earth to dig holes in. Another is there’s a lot more potential customers in the great herd of proletarians who are more inclined toward silver for psychological reasons. It’s just so hard to plunk down $1400 for such a little piece when you earned it the hard way. Other reasons but didn’t intend to go down this road.
See, Steve won’t comment on why Silver has usually not held it’s value in past while Gold has. I would return your warning to me. No one is coming to save you. Maybe you are being fleeced as we speak.
Sorry, was trying to drive. no time to do this right I guess
Everyone says that gold & silver will be used to buy/sell when the end of the U.S. finally comes; but most of the books I read on the so-called end times find people using BULLETS to buy with! The gov’t is buying up ammo in large quantities to keep it off the market or make it too expensive to buy in quantity. What good is having a gun if you have nothing to shoot out of it? Only the LONE RANGER used silver bullets and he had his own silver mine! While I have a store of old silver dimes and quarters, plus gold & silver .999 fine coins, I also have several boxes of .357 and .38 caliber bullets, plus 12 ga. shotgun ammo., all available for self defense or trade. That is the real precious metal store of value!