The New Bull Market In Silver?
The latest I have heard is the new bull market emerging in the near future. That would mean a complete economic recovery in the emerging markets measured by the MCI.
While Bull markets are generally cyclical the only way one is going to occur is if the central banks think it is a good thing to blow a bubble in. Let me repeat that. The only way that a bull market will occur is if the central banks think it is a good thing. For example if everyone saw that a bull market was likely to occur and were invested heavily in the commodity sector you can be sure that the Central bank agenda would likely be to blow a bubble in the markets that people thought the most likely to rise.
Are investors heavily invested in the bottom at the moment?
No.
That being said, don't look for them to blow a bubble for the Soros crowd any time soon. Those days are long gone. Which is why it is 'no longer fun" to be a hedge fund manager. When the markets range as they do in short cycles it makes it very hard to get in and out of positions unless you are a liquidity provider looking to make money on the liquidity provision.
I have attached the chart below so you can basically look at the technicals surrounding Silver.
Does that look like an emerging bull market to you?
You can clearly see the range it has been in for well over eight years. Yes it is forming a bit of a break out triangle at the top. So is oil on the daily's but likely what will happen is it will break out to the upside and then quickly reverse back down lower. If you want to play the break out that is how I would do it. Be on the side of the liquidity providers if you must.
Yes silver is used for various industrial parts and some technological parts but there are a lot of alternatives now. It is no longer the sacred metal that it once was (if it ever was in relation to price).
A full commodity book (like say back in the early 2000's) would quite simply crash the markets as the prices of everything would become ridiculous as they did before. It becomes too hard to carry debt and this causes a collapse in liquidity. Not very likely to happen again.
You have to keep in mind the economy is built completely on leverage and debt. Nothing else. So in order to keep the debt manageable you need to have moderate to low interest rates while not allowing any bubbles to form in goods and services.
Obviously you know how I buy or sell by now. When no one sees it as a good investment is the time to buy but at the same time you have to understand why a bull market is likely to occur or your investment will return very little.
My thought around the new commodity bull market is the same as my thoughts around the stocks markets tanking and the housing market collapsing. IT AIN'T GONNA BE ALLOWED TO HAPPEN! Cheers!
While Bull markets are generally cyclical the only way one is going to occur is if the central banks think it is a good thing to blow a bubble in. Let me repeat that. The only way that a bull market will occur is if the central banks think it is a good thing. For example if everyone saw that a bull market was likely to occur and were invested heavily in the commodity sector you can be sure that the Central bank agenda would likely be to blow a bubble in the markets that people thought the most likely to rise.
Are investors heavily invested in the bottom at the moment?
No.
That being said, don't look for them to blow a bubble for the Soros crowd any time soon. Those days are long gone. Which is why it is 'no longer fun" to be a hedge fund manager. When the markets range as they do in short cycles it makes it very hard to get in and out of positions unless you are a liquidity provider looking to make money on the liquidity provision.
I have attached the chart below so you can basically look at the technicals surrounding Silver.
Does that look like an emerging bull market to you?
You can clearly see the range it has been in for well over eight years. Yes it is forming a bit of a break out triangle at the top. So is oil on the daily's but likely what will happen is it will break out to the upside and then quickly reverse back down lower. If you want to play the break out that is how I would do it. Be on the side of the liquidity providers if you must.
Yes silver is used for various industrial parts and some technological parts but there are a lot of alternatives now. It is no longer the sacred metal that it once was (if it ever was in relation to price).
A full commodity book (like say back in the early 2000's) would quite simply crash the markets as the prices of everything would become ridiculous as they did before. It becomes too hard to carry debt and this causes a collapse in liquidity. Not very likely to happen again.
You have to keep in mind the economy is built completely on leverage and debt. Nothing else. So in order to keep the debt manageable you need to have moderate to low interest rates while not allowing any bubbles to form in goods and services.
Obviously you know how I buy or sell by now. When no one sees it as a good investment is the time to buy but at the same time you have to understand why a bull market is likely to occur or your investment will return very little.
My thought around the new commodity bull market is the same as my thoughts around the stocks markets tanking and the housing market collapsing. IT AIN'T GONNA BE ALLOWED TO HAPPEN! Cheers!
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