Podcast : Peter Grandich, It’s Time To Put On The Bear Suit…… Courtsey of Bull market Thinking

By | January 12, 2014

Peter Grandich is a very sharp investor and analyst (in my humble opinion).

You really should listen very carefully to what he has to say. After hearing the interview, I realise I have already covered some aspects here and here.

Enjoy …. Mitch  - Silver Sufferer.


By Tekoa da Silva, Bull Market Thinking:

I had the chance recently to reconnect with Peter Grandich, Senior Market Commentator with Money Talks. It was a powerful conversation as Peter just issued a new bearish call on U.S. equities markets, which is the fourth time in his career of having done so.

Peter is known for having donned his “bear-suit” in 1987 right before the largest stock market crash in Wall Street history, as well as in 2007, only months before the 2008 financial crisis.

Now, according to Peter, financial conditions have warranted a return of the “bear-suit,” led by two primary factors—both of which are long-term positive for gold.

The most troubling sign of a major market top Peter noted during the interview, was the recent completion of, “What we like to call a megaphone [chart pattern]…It took several years to work to the top of the megaphone line. So I suspect the most likely scenarios will take several years to work to the lower end. That lower end is somewhere in the 6000 to 7000 area on the Dow. But that doesn’t mean that as it goes lower, there won’t be intermediate bear market rallies that can be substantial.”

Podcast with…… Peter Grandich 

Chart: Megaphone Topping Pattern

megaphone image of S+P500

When asked to further comment on precious metals, Peter indicated that, “There has been something very, very wrong in the gold market. We know the paper price of gold has declined…from almost $1900 to…now a little bit over $1200 and that’s nothing to sneeze at. That is a decline. But usually when something declines in value like that, there’s a great physical exodus from it.” 

“[As a market] example, when I was a kid, [during] the first oil shortages – we had big cars then. If you had a big car, the value went down. End of story. When the real estate market took a hit, houses went down across the board. Yet when the paper market went down, demand for actual ownership of gold went up and it just hasn’t made sense, such physical purchasing and yet the paper market was going down.”

That market discrepancy Peter concluded, has led to, “[A] great shift of gold ownership out of the West…into where people who truly still have purchasing power—the Far East and Asia…is near completion and when it does happen…then we will see a dramatic rise back. I believe we’re starting to see that now.”

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