Thursday 23 November 2017 ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares

Don’t Become Complacent With Stock Markets This High - Blow Off Top is Nigh

By Tom Winnifrith | Wednesday 11 January 2017


Markets may move down soon which may include mining stocks - that is the view of commentator David Skarica who is concerned about the potential for a big debt crisis which could cause a short term deflationary bout, but it may be a great buying opportunity. Commodities will most likely rally into that deflationary period first and be similar to 2001/2002.

Stock markets are over priced and he thinks that we are close to a blow-off top. He suggests going to cash, or being aggressive by purchasing low priced stocks combined with some short positions of overvalued stocks as a hedge. David feels investors should be looking at precious metals over the next six months and cautions not to become too complacent with the markets being this high.

Trump may have difficulty with infrastructure spending due to Republican opposition. China’s economy is still the driving force for commodities and metals. Be wary of iron ore as there is a large supply glut. Many shipping stocks have rallied on news of Trump’s election, and have come back down. He much prefers gold and precious metals at this time, and recommends acquiring positions for the next bull run.

Gold stocks declined in the November-December period as David expected. There has been a very defined downtrend since summer which should change soon- and the market may be setting up for a rally. The dollar has recently dropped, and as a result other currencies such as the Canadian and Australian dollars have rallied a little. All is explained in the latest podcast from Palisade Capital

Filed under:

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.


Comments are turned off for this article.

Site by Everywhen