Monday, July 11, 2016

Gold – Eerie Pattern Repetition Revisited
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Acting Man discusses observations from Incrementum's recent gold report & also additional analysis: "The 2011 – 2015 bear market compared to the 1974 – 1976 bear market (stretched by a factor of approx. 2.1x). The peaks and troughs are aligned and as you can see, since the late 2015 low, the patterns actually continue to mimic each other  .. Needless to say, this is actually quite eerie. However, although the fundamental backdrop of the 1970s was obviously different from today’s, there are actually many parallels applicable to the gold market, as our good friends Ronnie Stoeferle and Mark Valek have pointed out in this year’s In Gold We Trust report. Indeed, if one reads mainstream press articles written near the bottom of the 74-76 bear market and compares them to articles written near the 2015 low, it is noteworthy that they are almost without exception making exactly the same arguments! .. It will be very interesting to see if these patterns will continue to track each other this closely in the future. If so, then we are in for a wild ride – an extremely volatile rally (interrupted by often scary corrections), that will ultimately end in a veritable mania and produce incredible gains in the long term. Unfortunately, in this case we should also expect that the times will get a lot more “interesting” – in the Chinese curse sense."
LINK HERE to the commentary

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