(Part 1) Anatomy of the bearish market (in a nutshell)
We're supposedly at the end of the bullish market (RED) with inflated stocks with margin, credit, and debt. Some stocks will undoubtedly melt-up (skyrocket) [this year - highly shorted securities are current plays]
We're supposedly at the end of the bullish market (RED) with inflated stocks with margin, credit, and debt. Some stocks will undoubtedly melt-up (skyrocket) [this year - highly shorted securities are current plays]
(Part 2) Eventually, once the bearish market in in our doorstep - In order to preserve wealth, investors would be buying gold as fiat currency will lose value for gold to pick up in value. They are inversely proportional.
Nothing is gained. Nothing is lost. All is transformed.
Nothing is gained. Nothing is lost. All is transformed.
(Part 3) On the first step of the bearish market (PINK), investors would be looking out for the true dip of the stock market / real estate and crypto.
Nobody knows when the market will reach the very bottom so be prepared to average down on your holdings.
Nobody knows when the market will reach the very bottom so be prepared to average down on your holdings.
(Part 4) Considering the economy may face inflation risk [TEAL] (nothing as 0% chance for hyperinflation), every product of the market including the cost of living will increase. Hence, gold helps to hedge that change.
(Part 5) There is a small window for investors to look out for dips in the market before inflation is felt (not until months or years even) because increased liquidity from printing takes time to circulate in the open market.
(Part 6) For US & Canada only, mortgage / student loans are most likely on a fixed interest rate with a total amount to pay out already established in a contract. Take advantage of inflation to pay those up.
(Part 7) For adjustable interest rate-based loans, once the economy faces a correction - Interest rate will increase with inflation making your overall contract more expensive to pay up overtime. Pay these liabilities quickly between the melt-up (RED) and buying gold (PINK)
(Part 8) Here is the value of gold in Post-WW1 Germany in hyperinflation years.
(Part 9) Once investors feel the economy is at the bottom with the highest inflation rate possible, they will be dumping gold to retrieve back their initial investment + possibly a profit. Gold value increases when fiat currency value decreases.
(Part 10) In the ascending phase (PURPLE), inflation slowly decreases overtime and stocks will gradually reach the level from where they fell. Past that period, another bullish market will begin.
Anyone able to preserve its own wealth can indefinitely multiply its holdings.
Anyone able to preserve its own wealth can indefinitely multiply its holdings.
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