Stock Market Meltdown Likely to Drive Gold Towards $1,500

Jon Economy, Gold, Market Commentary, Politics, Precious Metals

I’m sure you are well aware of the big stock market drop that hit the US stock market on Friday as the DOW fell over 600 points following the UK BREXIT vote.
Almost every sector of the stock market fell except for gold and Treasury bonds.
I believe that what we saw on Friday was the simple start of a big drop that is going to turn into a total stock market meltdown in the coming weeks.
In fact the whole drop may not end for a few months.
I know that might be hard to believe or accept, because very few people are saying that people should sell or be worried.
A big problem in the stock market world is that when you tell people to sell many simply get angry at you.
No one wants to be told to sell.
Few people will listen and if you tell people to sell and things go up they will crucify you.
This puts investment advisors and stock brokers in a bad spot.
If they encourage their clients to sell and the stock market goes up they are likely to see their clients go elsewhere.
If things fall all of the other brokers and advisors are keeping their clients in so they can just say oh well or come up with reasons to hold and hope.
So no one has anything to gain by getting people out of the stock market and everything to lose by doing so.
People have been sold a dream by the financial media and investment industry that all they have to do is put money into the stock market and do no thinking and no work and get rich one day.
But that is not how the real world works.
Unless someone wins the lottery by being lucky to own a stock that goes up for decades on end like buying Apple at $1.00 they are not going to get rich by doing no work in the stock market. You have to think and make changes from time to time in the investment game and most people just don’t want to do that.
Stock market drops happen. You saw one in 2008 and in 2000 and this drop will eliminate the margin player and lazy bubble bull when it is done.
And here is a secret. The world bankers and elites that rule the global financial system are not in charge of some control conspiracy causing crashes. Instead they are totally nihilistic and create situations that lead to disaster.

This post was published at GoldSeek on 28 June 2016.