Thursday, November 24, 2011

Happy Thanksgiving

Happy Thanksgiving to you and your family.

A couple of charts to get your day started before the football kicks off.  The first is the current federal revenue vs. spending on a historical scale.


The second shows our current deficit in comparison to those throughout American history.


With gold up 19.3% and stocks down 7.5% through Thanksgiving this year, the next chart shows a recent Gallup poll asking Americans what they thought was the best long term investment.  Gold moved into its optimism phase of the secular bull market when it crossed over $1,000.  It is now the leader on the board, although most Americans still put less than 1% of their portfolio into gold related investments.  That will change. 


The final phase, the mania, will follow when investors rush in full speed knowing that they "can't lose" with gold.  This is when you want to be selling and purchasing other assets in the valley of their bear markets: real estate and stocks. 

I anticipate one more massive sell off in precious metals before the mania stage begins.  Make sure to have some cash available to take advantage of this opportunity.

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