The Most Important Trend in Finance Is Back On – It’s Go Time

Jeff Clark's Market Minute

Mike’s note: At Market Minute, we bring you profitable trading advice that you won’t find in the mainstream – especially in today’s market. That’s why when today’s essay came across my desk, I had to share it with you.

Tom Dyson is a world-traveling analyst and investor. A few years back, Tom left the U.S. to travel the world with his three kids and ex-wife, draining nearly all their savings and retirement accounts of cash and converting everything into gold and silver.

Tom has long believed that our financial system is cracking. Given what's happening – the bankruptcies, the layoffs, the surging national debt – he was prescient in his predictions. And now Tom is going “all in” on an idea he believes will have a massive impact on your financial future… and he shares how you can protect yourself while you profit.

Read on to see Tom’s far more successful alternative to the “buy-and-hold” approach, and click right here to learn about the single trade Tom has gone “all in” on that could 10x your money…


The Most Important Trend in Finance Is Back On – It’s Go Time

By Tom Dyson, Editor, Postcards From the Fringe

The most important trend in finance is the decline in the Dow-to-Gold ratio.

The Dow-to-Gold ratio tracks the Dow Jones stocks as priced in gold. It tells us the best times to buy gold, and the best time to buy stocks.

It peaked in 1999 at 41. Then it began what I call its “long walk down the mountain” to where it always ends up. That is, below 5.

Let’s call this the “primary trend.”

But along this primary trend, it got waylaid. And it spent eight years backtracking. Eight long years… of fake money and rising stocks.

Now, finally, this most important trend in finance is “back on.”

To my mind – and for my money – it’s presenting the biggest opportunity to profit since, well… I found bitcoin in 2013.

It’s go time. This is it.

My Gold Story: Why I Went “All In”

I left my job nearly two years ago. We sold all our things. Kate and I (we’re divorced) hit the road with our three kids. We don’t have anywhere to live. And we homeschool the kids. 

We left “the matrix” in another important way, too. 

When we left America, we drained our bank accounts and retirement accounts of cash, and we converted all our savings into gold and silver.

Why did we do this? We don’t want to be in the system anymore. It’s unbalanced and unstable.

So we’re going to sit on the sidelines, in precious metals, until it’s safe to return to the financial system. When it’s finally safe, we’ll sell all our gold and invest in the top dividend-raising stocks. 

Our money will stay there – I hope – generating bigger and bigger dividends for the rest of our lives. (More on this in a moment.)

How will we know when it’s safe? 

That’s where the Dow-to-Gold ratio comes in. It’s the ultimate barometer of systemic “health”… 

Recent Reversal

Our Dow-to-Gold trade is based on a simple premise…

You buy stocks when they are cheap relative to gold. That is, when the Dow-to-Gold ratio is below 5.

Then you sell stocks when they become expensive – when the Dow-to-gold ratio rises above 15. At that point, you return to gold.

Over the course of the last 100 years, you would have made only six trades. But you would have also handily beaten a “buy-and-hold” approach.

The chart below shows it all. The towering peak in 1999. The countertrend rally from 2011 to 2018. And if you look carefully, a recent reversal…

I interpret this recent reversal as the Dow-to-Gold’s primary trend reasserting itself, getting back on track, and once again marching back down towards single digits.

This next chart shows the zoom-in of the last two decades or so…

The ratio topped out at 22.36 in October 2018. It’s been falling since… and I speculate it’s about to head much lower.

Of course, if I’m wrong and the Dow-to-Gold ratio isn’t ready to resume its primary trend lower, the market will let us know.

How? By making a new high, rising above 22.36, and invalidating the downtrend. (It’s why I set our “stop loss” at 22.36.)

But I’m willing to bet that’s not going to happen… 

Trend in Motion

The ratio likes to move in big, clear trends. And once it’s in motion, it tends to stay in motion.

Its drop in 2018 implied that gold would start outperforming the stock market… possibly for as much as the next five or 10 years.

I immediately drained my bank and retirement accounts and put everything into gold and silver. Then, I started nagging my friends and family to do the same.

Remember, the ratio peaked in October 2018 at 22.36.

My hypothesis is that the Dow-to-Gold ratio is now back on its way down… to a level somewhere below 5. Bill Bonner calls this its “rendezvous with destiny.”

I will hold my gold until then, at which point I’ll sell it all and invest the proceeds into the stock market.

Specifically, I will buy what I call “dividend aristocrats.”

These are companies like Coca-Cola, Johnson & Johnson, AT&T, etc. They have decades-long track records of relentlessly raising their dividends.

There are no better passive investments than stocks like these. You get rich twice this way. One from the rising dividends and two, from the compounding effect of reinvesting dividends.

There is no better way to grow wealth. 

But until it’s time to buy these dividend aristocrats, I’m sitting on the sidelines in gold, where I will remain until stocks are ready to beat gold again. Then, I will resume my long-term “dividend aristocrat” compounding strategy. 

If I’m right about this – and if I time my zigzag correctly – my family will never have to worry about money again. 

Until then, I’m keeping an eye on the Dow-to-Gold ratio. It’s at 13.5 today.

Regards,

Tom Dyson

Editor, Postcards From the Fringe

P.S. While bullion will protect your wealth, I’ve created an entire trade to profit on this opportunity.

I’ve invested nearly $1 million of my own money into this strategy. And on Wednesday, May 20, I’m sharing the details in a special briefing

My mentor Bill Bonner will even be joining in from his ranch in Argentina. To make sure you don’t miss it, reserve your spot right here.

In Case You Missed It…

Bill Bonner's must-see announcement for May 20th

On Wednesday, May 20th, at 8 p.m. ET… New York Times bestselling author and multimillionaire investor and businessman Bill Bonner will step forward…

He'll air a startling new announcement that could have a bigger impact on your wealth than anything he's shared in decades…

If you watch one event this year, let this be it.

The man whose research firm predicted 9/11… Black Monday in 1987… the dot-com meltdown… and the 2008 and 2020 crashes… will broadcast an urgent new warning from his secluded ranch in Argentina.

Click here to reserve a free spot now.

image

Get Instant Access

Click to read these free reports and automatically sign up for daily research.

image

The Three Best Gold Coin Deals on the Market

image

How You Can Start Profiting From Maganomics

image

The Ultimate Guide to Taking Back Your Privacy

Jeff Clark Trader
55 NE 5th Avenue, Delray Beach, FL 33483
www.jeffclarktrader.com

To ensure our emails continue reaching your inbox, please add our email address to your address book.

This editorial email containing advertisements was sent to phanhoa1821960.trader@blogger.com because you subscribed to this service. To stop receiving these emails, click here.

Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice.

To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us here.

© 2020 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC.

Privacy Policy | Terms of Use

No comments:

Post a Comment