Al Housego: This Gold Bull Market Could Be the Longest and Strongest in History
This week, we talk to Fund Manager, Al Housego, responsible for managing 4 funds with Crystal Wealth. His funds are weighted towards resources equities and bullion. At this time, Al believes that the general markets are overbought and in a prime spot for a major crash.
So what will cause things to finally come unglued? Al believes that is too hard to point out, but it could be a black swan event. Share buy backs have declined, S&P companies have record debt, and with QE 3 being open ended there is still a great deal of inflation latent in the marketplace.
The bounce back from the bottom in gold stocks has been one of the strongest in history and thus indicates a major bull market is in place. A correction of some sort is likely but the over all direction is clear.
Analysis is showing the move up in gold will be the strongest and biggest in history, the longer it takes the higher it will go. This is fuelled by the unprecedented amount of money printing that has taken place in the past eight years. Gold is the one thing that can maintain its value in the face of inflation.
Talking points on this weeks interview:
• The S&P 500 looks to be topping
• QE 3 is open ended
• Could a DOW crash pull down the gold bugs too?
• Bull markets try and buck off weak hands; get ready!
Al Housego CFP, CIM is associate portfolio manager and lead portfolio strategist of Crystal Wealth. He manages four portfolios including resources and precious metals.