How Gold & Stocks are About to Repeat the 2010 Bottom
In May of 2010, immediately following the flash crash many investors started to become bearish (nervous) regarding their position in gold and equities. Once the general public became aware that the stock market could fall 10% in a matter of minutes, investors became very cautious. Suddenly protecting their capital and current positions was at the forefront of their investment process.
Gold, DAX and Dollar Still Pointing to Sharply Lower Prices
The past month has been a wild ride for both equity and commodity traders around the globe. Novice traders have had their heads handed to them and their investment accounts drained. When fear, uncertainty and volatility are running high, some of the best opportunities become available to those who know what to look for.
It seems everyone is looking for a place to put their hard earned money as uncertainty around the globe continues to rise. Oil, Gold, and Silver which have been the hot investments for the past few years took it on the chin over the past month with oil falling 13%, gold dropping 15%, and silver with a whopping 30% decline.
So all of the talking heads and pundits are coming out with their own reasons for gold taking a big fall. And if we look at history we would think that all of the credit woes of Europe have magically disappeared. Or China has found the cure for it's inflation problems. But no, none of the above has happened, but gold has still plummeted $100.