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so long that most of us don't have first-hand experience. All we basically know are markets of the last two or three decades. But those very slow cycles are being completed, and the implication is that conditions are going to change. I'm not forecasting an imminent collapse. What I am suggesting is that the correction that is about to begin is not only going to be correcting the bull market that began 15 years ago, but it will also be correcting the very long-term rally that started around 1840 or so. It will also be a sustained period, more than likely of erosion. Of course, there will be periods of market rallies and economic growth along the way, but the overriding trend will be for price deterioration. And once this "new era" begins, it's likely to stretch out over a very long period. |
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And that means that the euphoria that we're seeing now, the market highs that we are experiencing, could be the highs for a long time. We may be seeing the highs for our lifetime. The man in the street, the general public, would not have any concept of the cyclical change that I'm describing. I would be willing to bet that many people in government, maybe in central banks, don't adequately understand what people like me are talking about. |
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Neal: This kind of talk sounds very extreme. |
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Nina: I'll tell you why I feel it's important to be prepared to talk about the coming change. I believe there are times when our life circumstances are not as favorable as we might like. But that's the nature of life, ups and downs. Personally, I would prefer to know in advance when adversity was coming so I could prepare. I would rather be proactive, not reactive. As we know in the marketplace, there are opportunities regardless which way prices go. It is never uniformly negative. There are always bright spots. I would rather know when to be looking for these bright spots. |
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Neal: Let's say readers buy into this scenario. Maybe diversification is in order here. What do you think? |
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