Is something happening now? A major change of direction? Is another shoe dropping?
----------- This stock has paid dividends for over 100 years, nonstop (Full Information inside) -----------
Our small cap stock recommendation service helps you zero in on companies that have strong fundamentals, proactive management and a potential to grow well over a 3 to 5 years period.
We have managed to find several strong small cap companies that have delivered good returns to their shareholders over a long run.
In fact, one of our find happens to be a lesser known private sector bank that has paid dividends for over 100 years now, nonstop!
You probably would have never heard about this stock from your broker or your friends... because they themselves might have never heard of it either.
However, this stock has already delivered a solid 118% return since January 2010 when we recommended it...
Now, if you want to access more information on this Bank, and other stocks like this, then all you need to do is read on below...
But you must hurry... This is a limited period opportunity. Click here for full details...
We don't know yet.
Everyone believes the gold market has reversed direction. The bull market of the last 14 years has finally ended. It's all downhill from here, they say.
But if that is true, what else will have to be true? The last bull market in gold ended when the Fed changed course. Arthur Burns was replaced by Paul Volcker. A loose money policy became a tight money policy. Interest rates - which had trailed behind the inflation rate - were suddenly jacked up so high that real interest rates (the difference between nominal interest rates and the CPI) were as high as 5%.
'Don't fight the Fed,' they say on Wall Street. Those who fought the Fed back in the early '80s were wiped out. The Fed was tightening up. Volcker was determined to bring inflation rates down. That was not the time to own gold. It was the time to own bonds. You could buy a 10-year T-note with an 18% coupon. And interest rates (along with inflation rates) were headed down. Your bond would go up in value for the next 30 years.
By contrast, gold went down...down...and down. By the end of the bear market in gold there was hardly a single gold bug who was still sober or still solvent.
But what's the Fed doing now? Has it reversed course? Has Ben 'Bubbles' Bernanke been replaced with a tough-as-nails inflation fighter? Has the FOMC vowed to stop printing money Has the loosest monetary policy in US history given way to a tight policy?
Has the bull market in bonds ended? Have the lowest interest rates in half a century suddenly started to turn up?
Then what has changed to reverse the fundamental direction of the gold market? Nothing we know of. Instead, the Bank of Japan has recently joined the central banks of America, Europe and Britain, promising to keep printing money 'as long as necessary' to get inflation rate UP!
Every major government in the Western world is running a big deficit. Every major central bank is printing money. And every saver, as David Stockman put it, is being "crucified on a cross of ZIRP."
That's right, too. Savers had a field day when the Fed changed direction in the early '80s. They were paid to save...and paid well.
Now, savers are being punished. They earn less in interest than the real rate of inflation. Is that changing?
At the time the last bull market in gold ended, everything stopped in its tracks and turned around. Stocks had been going down for at least 16 years; they suddenly started going up. Bonds had been going down too, ever since the end of WWII; they too started moving in the opposite direction. Savers were rewarded; borrowers were punished. And gold reversed course and began an 18 year bear market.
Is there any major turnaround now that would justify or at least signify an historic turn in the price of gold?
Central banks and central governments are committed to a particular course of action. Does it lead to more valuable paper money? Does it lead to price stability? Does it lead to growth and glory?
Or does it lead to bubbles, crises, booms, busts, and an eventual blow up? As far as we can tell, central banks are looking for trouble. We still want to own as much gold as possible when they find it.
Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.