Nov. 22, 2011, 8:47 p.m. EST
Volatile markets signal a 2008 repeat
By Mary Anne & Pamela Aden
It's still all about Europe. The deteriorating situation has been affecting all of the markets, but the failure of the super-committee to reach a compromise on U.S. debt is now weighing in too.
The end result has been uncertainty, volatile market swings, risk aversion, vulnerability and growing demand for safe havens.
Increasingly, we're hearing more talk about a 2008 repeat and this is indeed a possibility. In fact, more signs are starting to point in that direction...
Aside from the slowing Western economies, the U.S. and global stock markets have technically turned bearish. And if the Dow Industrials now stays below 11700, the bear market will remain in force, signaling stocks are headed lower.
The gold price has also been declining, along with stocks and commodities, since hitting its record high in September. And while gold is still in a major bull market above $1500, as events in Europe have intensified, it hasn’t been the safe haven of choice.
That honor goes to U.S. bonds and the U.S. dollar, which continue moving higher.
This is what happened in 2007-08 and the markets provided signals prior to the meltdown ... With the debt crisis in Europe and the U.S. now reaching nerve wracking levels as the daily drama continues, the stage is essentially set for some sort of accident that could dramatically affect all of the markets. Hopefully, it won't happen, but it could.
Full article: http://www.marketwatch.com/story/signs-point-to-a-2008-repeat-2011-11-23
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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