pog, page-21

not sure everyone can access the who article so here is the second half.


Investors are willing to accept such low yields on bonds because it's better than getting crushed by equities as they did in 2008. The stock market is massively overvalued. The total market cap compared to GDP is above 100%, while the average back to 1990 is 57%.

We could see a huge plunge in about late June or early July as the Fed continues to taper, which should be good for gold. Initially we could see a period of deflation, similar to the end of 2008 and beginning of 2009. Gold fell at that time, but then came roaring back once we had a very aggressive central bank intervention and you are going to see that later this year….[as people see] that this economy is not getting better and that it [the economy] cannot function with QE the way they want it to.

If you want to make money long-term, you have to bet against the prevailing consensus of most financial experts. I have never seen such an overwhelming bullish consensus as there is today that the economy is going to do great, that gold is a sell, and that the stock market is going to go higher, and if you want to build speculative wealth, you have to bet against that.

Gold and Silver Past, Present and Futures Swings

The gold and silver markets have extended their corrective patterns during this most critical and decisive period of time and price. A cluster of major short-term, intermediate and long-term cycles converge around this time frame from late December to the August/September time frame. This is another reason why the expected bottom that started back in late December of 2013, is in the process of completing a major 6 month bottoming process ending by June 28, 2014.

The gold and silver markets are indicating the weekly trend is down. A very good indication of increasing probabilities the cyclical expectations for a multi - year bottom completion will be validated by making new lows during this time frame.

The weekly downtrend signals gold could drop to the .786 Fibonacci retracement at $1231 into the final June time frame, a completion of this second corrective wave usually takes place at these levels and it could unfold anytime.

Short-term, intermediate and long-term traders/investors should use this final window of opportunity to trade short - term and accumulate to build a long - term bullish position as current prices are truly in a historic environment when fortunes can be made in a relatively short period of time. The next 2 to 3 years will go down on the books as such a period of time in history.