Excellent post, Tony, and thanks for the feedback.
Still, I am concerned that this time the possible market correction will have more to do with two primary factors.
First. Too many years of an over extended credit (debt) inbalance caused by the inherent distortions in the use of worldwide paper currencies that are not pegged to the gold standard that causes a cash crises ala the recent "March Margin Madness" in Canada.
Second. This could be exaggerated by a strong net outflow of cash from a very long, steep and uncorrected bull market.
I have to wonder just how much downward pressures people will be able to tolerate when it is their retirement money, not their disposable income that is in jeopardy?
Honestly, though, your observations regarding interest rates may prove to be the deciding factor after all. It is a very sound position. It will be interesting (to say the least) to see how all of this works itself out.
You can bet that I personally would not go out to play on Wall Street right now without having my Puts on. That's for damn sure.
The way I'm seeing it, today could well be a very nasty day for Wall Street.
Like you, though, I really do believe that the strong junior mining companies are the preferred place to be invested right now. This, even though I am not particularly bullish on bullion just yet. At least the downside risk in bullion, however, appears to be greatly reduced.
Nice talking to you, Tony.
Warm regards,
JED
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