Gold (and ALTA) may soar due to Clinton/Lewsinky scandal.
I have a nightmare type vision. Although I have not read anything this weekend to support it, I fear a great drop in the stock market this week, with no short term reason for a recovery.
Here is what I base my theory on. The investment professionals credit Clinton with the robust economy, and the optimism that fuels, and is needed to cause a continued investment by the middle class in stocks. Clinton is surely only a symbol. Nonetheless, his immediate preoccupation with non-governmental matters, and the probability that a sudden drop in the market this coming week due to panic, and lack of confidence will sap his base of support, causing open speculation that he will resign by Tuesday, before or during the State of the Union speech. If the market drops precipitously on Monday, the country will blame Clinton and his popularity will sink further.
Because serious discussion of resignation, alone, would be evidence that a tragic event has already happened, it will shake up the investment community even more. This will motivate the pros to get out of the market as a herd to preserve their market gains of the preceding 6 years. Since no other stock market in the world is a safe harbor, I think we may see a surprising jump in gold. But the over-all up trend of investments will go into a rapid reversal.
Boy do I hope I am wrong. |
