Is the United States about to experience another major economic
downturn? Unfortunately, the pattern that is emerging right now is
exactly the kind of pattern that you would expect to see just before a
major stock market crash and a deep recession. History tells us that
when the price of gold crashes, a recession almost always follows. History also tells us that when the price of oil crashes, a recession
almost always follows. When both of those things happen, a significant
economic downturn is virtually guaranteed. Just remember what happened
back in 2008. Gold and oil both started falling rapidly in July, and in
the fall we experienced the worst financial crisis that the U.S. had
seen since the days of the Great Depression. Well, a similar pattern
seems to be happening again. The price of gold has already crashed, and
the price of a barrel of WTI crude oil has dropped to $86.37 as I write
this. If the price of oil dips below $80 a barrel and stays there,
that will be a major red flag. Meanwhile, we have just seen volatility
return to the financial markets in a big way. When volatility starts to
spike, that is usually a clear sign that stocks are about to go down
substantially. So buckle your seatbelts - it looks like things are
about to get very, very interesting.
Posted below is a chart that shows what has happened to the price of
gold since the late 1960s. As you will notice, whenever the price of
gold rises dramatically and then crashes, a recession usually follows. It happened in 1980, it happened in 2008, and it is happening again...
A similar pattern emerges when we look at the price of oil. During
each of the last three recessions we have seen a rapid rise in the price
of oil followed by a rapid decline in the price of oil...