Click here for Martin Armstrong’s latest letter from August 7, 2009 entitled Cycles and Pattern Projections.
Armstrong suggests the market will probably crash this September 2009 cycle, and then to a DOW at 20,000 through inflation. Gold is in consolidation right now, then to go up to $2500-$3000.00 with a peak of $5000.00.
I am not sure if I agree with Martin yet about the timing of the change in the DOW. I believe there is still the possibility of a government-backed bubble in equities and the bubble pop to be later than September and therefore a much worse downturn.
We will have to see what happens. I am not a day trader, so I am prepared for the next downturn whenever it occurs. But I do agree with Mr. Armstrong’s thoughts on the gold price. This is a currency event that is not yet realized by the average investor. It is only a matter of time.
I like Martin Armstrong’s Economic Confidence Cycle for one main reason…..in the face of horrible, HORRIBLE fundamentals the stock market and consumer confidence has been rising. When that confidence fades, everything will fall and people will rush to timeless safe haven investments, like gold.
It is the change in economic confidence to match the reality of the fundamentals that will mark the trend change in the dollar, in gold, in the S&P500.
Click on the Martin Armstrong tag to the right to find other posts relating to Martin Armstrong’s Economic Confidence Cycle.
Hi, He is a bit cryptic, but only if the Dow does not go higher than 11,000 next month; the 31.4 month cycle through May 2010 is still in place… and stocks will be cut in half between now and then. After the cycle has been completed, Dow 20,000 at some point in the future given inflation.
Comment by Q6 — August 18, 2009 @ 3:47 pm