Gary Savage: The Dollar Will Enter Panic Mode
Palisades Gold Radio: 9-13-2022
Tom welcomes back Gary Savage to the show. Gary is a retired entrepreneur, investor, and founder of Smart Money Tracker Premium.
Gary believes the dollar is over-stretched too far above the long-term average. At some point we will have a correction back to the mean which would be good for markets.
He expects this to happen by spring or summer of next year and will correlate with the Fed changing course. The coming recession will likely be serious as the Fed over compensates.
Problems in energy markets and the war in Ukraine are unlikely to end soon. Shorting markets is often a difficult way to make money and it’s usually hard to catch the tops.
When the dollar starts dropping those suppressing gold will have a very difficult time. The coming cycle will be a very good time to hold gold and silver.
Now is the time to accumulate metal and then sell it at the top of the next cycle. He explains possible reasons why these cycles occur and some of the repeating patterns.
Energy is likely to churn sideways this winter and everything will get dragged down in the three-year cycle lows. The next inflationary phase during which central banks panic will bring much higher oil.
This bear market will likely see equities fall to March 2020 lows. Gary outlines his thoughts on silver and gold along with the miners. Volatility is going to remain for some time to come and government actions will likely exacerbate inflation.
He advises investors to avoid over-leverage on anything at this time. Keep position sizes small and wait for the great opportunity.
Time Stamp References:
0:00 – Introduction
0:48 – Dollar Scenarios
4:28 – Recession Expectations
7:45 – Gold & Silver Outlook
10:48 – Gold Support Cycles
13:52 – Energy Markets & Inflation
15:50 – Equities Charts
20:12 – Nasdaq QQQ Chart
23:36 – Gold Futures
26:54 – GDX Miners
28:55 – Miner Input Costs
30:39 – Silver Outlook
34:00 – Oil Chart
36:56 – Wrap Up
Talking Points From This Episode – Outlook for equity markets and the dollar. – Why the recession may be deeper than many expect. – Energy markets and how to prepare for the next cycle in markets.
