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To: DMaA who wrote (151910)8/14/2019 3:31:31 PM
From: isopatch3 Recommendations

Recommended By
DMaA
Honey_Bee
Rollocaster

  Respond to of 459205
 
Yes. Though would put a little finer point on it, by saying perceived safety. Perceived safety changes depending upon where savvy investors see the economic & stock market cycle. During a bull market, well managed stocks are not considered as risky as when those same investors see evidence the economy, global AWA domestic, slowing enough for company profits to sharply decline.

After savvy corporate insiders and professional investor/traders are exiting in numbers, the better individual investors follow their lead. Finally, investors with average & below average skills start to panic. As the decline gets more serious and widely publicized in the MSM? Selling intensity increases as the remainder of those who will ever sell get blown out near a major Intermediate Term (1 to 6 months per my categorization). Or, near the major Long Term Market bottom, usually after a year or more of emotional hammering.

Bonds have been a safe haven a lot longer, this time, than in prior economic cycles because we're in a Secular (def. as two or more economic & market cycles) Debt Deflation which began in 2007.

The FED was able to flood the system with more liquidity in 2008 (and for some years after that) than seen since the Great Depression of the 1930s. Tsy Bond Interest Rates are now at all time record lows. The rub is the FED is still engaged in QT (Quantitative Tightening) which sucks liquidity out of the global monetary system, offsetting the lower rates, because US$ is the world reserve currency.

Strategist from my old Alma Mater, Merrill Lynch (now part of Bank America) recently wrote he expects the FED to panic and pivot 180 degrees from QT to a mega tsunami of QE (quantitative easing) before year end. THAT is why Gold began to be seen as a safe haven and started it's powerful bull run in March. The best investors & traders in a market sector are well get into major trends early. These folks already have significant gains.

Nobody can predict the future. OTOH, based on my long career as a professional trader/investor? Gold is likely to go a lot higher. Important to emphasize that I don't forecast price tops or when they may occur. That never made me any money. What worked, over the decades, in the few industry sectors I've focused on is to wait for Mr. Market to tip his hand via my proprietary tool kit of indicators which I will say are mostly fundamental, monetary and sentiment based though do use price charts, as well.

Hope that answers your question. Posting time's up for awhile. Already super late for lunch....(((

Cheers,

Iso