Thursday, and more evidently Friday, we had a flashback of what a market crash looks like. Not a crash yet, but we got the idea. Margins are at an all time highs, P/E are ridiculous, the Dow 5 yrs chart look like it was made by an expert in topography and an architect who wanted the perfectly balanced staircase… No matter what , no matter the bad or good news we have seen the market keep going up, totally dysfunctional, illogical, uncalled for. That was also a very bad environment for PM’s. Most of the money are “trapped” in equities, bonds and, partially, in other assets classes and still away from the slower money held in PM’s. Should the DOW continue his nosedive ( sooner or later someone was going to flush the toilet anyway, I have been saying this since second half of 2013) and, the outflows of money out of equities are indeed good news for gold & silver… stay tuned since it is starting to get interesting around the world…Ciao.
