To see the complete analysis I am always referring to my blog posts following this correction since May – since it was correct I do not need to look into the details.
Following the previous analysis the market is close to finally reach its targets as predicted a long time ago.
It is quite sure it will retest SP 500 2,040 and ASX200 5,400 with a potential panic low of 1,970/5,150 somewhere in August (maximum in October, but I do not think so).
Gold – apart the market manipulations the trend is still to hit USD 1,050 (with a potential panic selling to under 1,000) brought by the strength of the US Dollar.
As the FED will struggle with the strong US Dollar, after the panic selling, gold will return to 1,300/1,350.
It is still following broadly the 1970 picture, which is worrying.
It could be still a “lame” investment for 2016…but it is good to have a 3%-5% as security.
But be careful what you wish for…if really in 2017/2018 gold spikes…it would mean something really bad for the market
( Eg Reserve Banks losing the trust of the markets)
Anyway that scenario is quite far enough to let it simmer in the background.
Update…I always refer to Gold and 1970.
Finally (thanks to Zerohedge) I found a chart which tells you two things
– The Death of Gold….is a myth…it came from 1974 to 1977….and then an amazing resurrection. As anything Gold has spikes and falls – just an asset. For historians the current gold crash started in March 13, in the 1970s Gold got crushed between November 74 and November 76 and in January 1980 reached an inflation adjusted top (in current price) of 2,080 (data London Bullion Market Association)
– the current theory that when interest rate goes up gold goes down….it is just a theory
investorpolitico 