Why the market isn't crashing., page-8

Yes its the interest rate thats driven all asset prices higher

And yes - now bonds are shifting to higher yields theyll start to attract capital away from div stocks.

But reality is stocks generally 'crash' only when earnings are seen to be declining vs current expectations.

3rdqtr us eps for sp500 was 2% above final forevasts - first positive qtr in 6.

So now there is v slight upward pressure from earnings vs downward pressure from rising interest rates

Us economy weakest dec and march qtrs - so we should expect a selloff in that period if interest rates and usd keep rising - as those both reduce earnings

But - as ive said before - hostorically gold can fall or rise in a market correction - so talking about overall market crashes and gold isnt really very smart

You need to understand what you think causes a crash vs what drives gold price.

Eg if a crash is caused by higher nominal interest rate without more inflation, then gold will suffer same as market - unless its a major crash in which case gold tend to hold ground because funds park money in alternative assets to minimise portfolio dmg

But generically id say Be careful what you wish for re crashes. Its amateur hour thinking thats a good reason to buy gold

What you want is high inflation - thats why us pm stocks bounced while ours havent - they expect inflation via trump

We dont have any extra inflation drivers on horizon atm except possibly oil