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« Gold-Prices.biz: Portfolio Update 18 July 2007 | Main | Silverado Gold Mines: Call of the Wild! »
Tuesday
Jul172007

The DOW Hits 14000 and 15000 is Coming Soon

The DOW Hits 14000 and 15000 is Coming Soon

As the DOW Jones Index ticks past 14000, we take a minute to consider where the DOW and the US stock market is going next.

We are not invested in the mainstream stock market, such as the stocks featured in the DOW for two main reasons.

Firstly, we believe that we can get much better returns in the uranium, gold and silver sectors. Secondly, and perhaps more importantly, we see a crash in the DOW somewhere around the corner.

Exactly when it will come we are not totally sure, but in will be in the next few years and so we are keeping out of the DOW because the crash may come at any time – usually when people least expect it.

Therefore I am sure you are wondering that if we see a crash coming in the DOW, why are we predicting it will rise to 15000 very soon?

The theory behind this is that before this big crash, there will be a rapid run upwards – a “blow off” if you will, as the DOW has one last gasp before it collapses.

This “last gasp” will probably come when the Federal Reserve begins to lower interest rates in the US. They cannot keep raising rates as it is killing the real estate market and the economy in general. When the Fed begins lowering rates, this will spark the last surge in the DOW, which will be quite dramatic, before it crashes.

So expect to see the DOW rise very quickly over the next few months and this will accelerate when the Fed eventually lowers rates. Although we see a big rise in the DOW coming, that is not a reason to invest. The best choice in our opinion is to put your hard earned cash into uranium stocks, to take advantage of the world shifting from fossil fuel to nuclear power and into gold stocks and silver stocks, to protect yourself and profit from the coming collapse in the US stock market and the US Dollar.

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Reader Comments (4)

I wonder if it will make 15,000, but it might. It's struggling for a 14,000 close and I was afraid to look this morning because of the Bear Stearns mess and the Dow futures being down about 65 points last night. We never see the Dow futures down that much. That's considerable.

I'm very concerned though I'm 90 percent in hard asset investments in energy and metals. We don't know where the crash will bring our own investments even if they rise later.

I just watched Barny Frank's comments in the hearing with Bernanke today. Frank is a very smart man, but he keeps being puzzled by Bernanke's concern with inflation when, ostensibly, we aren't in an inflationary environment. But as some of us recognize, we're in a very inflationary economy.

It's hard to know exactly what to do at this time. Astute people say they expect the crash in 2009-2010, but it could happen before. We will go into a credit crunch and deflation at some point.

Of course, I would suggest going for real assets right now. My own problem is that I'm already mostly in real assets and I want to have some cash in an economy with runaway inflation... I hold gold, yes. But if only I could hold gold in my IRA holdings as they now can in Canada.

July 18, 2007 | Unregistered CommenterGMiki

A dollar collapse, unlikely – but it is still prudent to have say 10% of your assets in gold?

Yes I agree we have structural problems in the USA, but the Chinese are not running to get out of the dollar – they are much more dependant upon the US for selling the stuff they manufacture than they are worried about the relative value of the Yuan v. the dollar. Social order there is dependant upon employment in the countryside and that will happen so long as the rest of the world continues to source product from China and not from domestic (wherever that may be) sources.

Let’s not kid ourselves, the sky is not falling, the fat lady has not sung – nor is she about to. A lot of money can be made in gold, but hey, let’s not run for the nuclear bomb shelters just yet. We are a long ways from financial Armageddon!

Jeffrey

July 19, 2007 | Unregistered CommenterJeffrey

If the Dow crashes apparantly if history is a guide gold crashes also as most cover their losses. Are you aware of this?

July 19, 2007 | Unregistered CommenterJohn

Unfortunately the Dow's last surge was 14,165.53, and now crashed and bottomed out at 6,500. It would of been nice to see a 15,000 level but i dont think we will see that...i think 14,000 is a bit out of our reach for years. Hopefully we see Dow 10,000 be the end of 2009.

June 23, 2009 | Unregistered CommenterBill

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