Wednesday saw an historic event take place. The Dow Jones broke through the 20,000 mark for the first time ever. Broadcasters broke out into song and into praise, others hailed it as a great triumph and a sign of great things to come. But is it?
This, in my mind, is not something that should be rejoiced. It is not something to write home about and focus on, for at the core of these markets is a rot that is there for all to see – if you only look hard enough.
Ironically, this “breakthrough” has come just as the US national debt level is set to explode through the 20 trillion dollar mark, a level that is completely and utterly unsustainable and is absolutely mind boggling if you attempt to imagine just how much money that actually is.
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The fact is, the markets are incredibly over priced and are due for a major, massive correction. Just like before the 2008 collapse, this is going unseen by those on Wall Street and the talking heads, as they are focused only on the short term and the next quarterly profits.
Yet, we in the precious metals community know better. We know that we should be focused on the long term and the ramifications that such a collapse in the markets could bring. We don’t need to look back too far for a reference, as it just seems like yesterday that we were going through the 2008 banking crisis.
Whether or not this crisis is going to be triggered intentionally, or naturally through the markets self-correcting is yet to be seen. Also, it is unknown to all when this great correction is going to begin.
One thing we do know, however, is how to best protect yourself in the event of the coming storm. Precious metals.
It is only a matter of time, so taking action and preparing in advance is the prudent thing to do. If you are already prepared, good for you. If not, then you have to ask yourself: “what are you waiting for?”.
Article by Nathan McDonald – Sprott Money