Thursday, December 29, 2011

2012, The Dow jones Annus Horribilis and Precious metals


I should acknowledge that I don't recommend towards the 2012 end of the world or even finish of an era phenomenon; nevertheless, my current analysis suggests that Next year could indeed be considered a extremely substantial 12 months.

I've been following a fractal (pattern) for the Dow graph for the final couple of years. I've written about it before, in a prior post. Essentially, the Dow jones chart is developing a comparable pattern to that particular that was shaped within the late 1960s towards earlier 1970's.

If the pattern continues in the same way to that from the past due 60s to earlier 70s pattern, the actual Dow could certainly have an annus horribilis (horrible 12 months). Beneath, is really a long-term graph from the Dow:
I've highlighted two fractals around the chart. I've additionally indicated 5 factors on each fractals to illustrate the way they might be comparable. Stage 1 on each fractals had been the precise point at which the actual Dow gold percentage produced a substantial maximum. This really is an essential gun, and it provides trustworthiness towards the comparison of those two patterns.

It seems that the Dow happens to be looking for that point Five. Point five would be able to be in, or maybe it's a small greater than the current high (of Twelve 928). Nevertheless, from a time point of view, it's most likely that people have reached point Five already (a retest might nonetheless be feasible).

When the present fractal continues it's similarity to that of the actual late 60s in order to early 70s fractal, the actual Dow could have a terrible drop for many associated with 2012. I don't desire to speculate as to exactly how low it'll proceed; nevertheless, if it remains precisely accurate to yesteryear fractal (fractals don't usually remain precisely accurate), it could decrease to 6000.

Because my other evaluation suggests that we're after era (an era from the corrupt debt-based monetary program), I'd truly anticipate the worst-case scenario. This means that a drop in order to 1000 is extremely feasible (not necessarily in Next year), although it appears extremely unlikely.

The Dow’s higher value, relative to the need for gold, was caused by this debt-based monetary program. It follows naturally which within the occasion from the debt-based financial method collapsing (it is going to); the Dow precious metal ratio could go to levels before the intro of this method. This particular level might be between 0.2 and 1, in my opinion. Consequently, it's feasible to have a precious metal cost of $5000, using the Dow jones at 1000. I don't say that we'll have these levels, but it's definitely feasible. Just about all I'm saying is the fact that we've to become ready for extreme conditions by no means prior to observed in our lifetime.

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