HELPING PHYSICIANS ATTAIN FINANCIAL SECURITY
By Robert M. Doroghazi, M.D., F.A.C.C.
The German economy is the 4th largest in the world, after the US, China and Japan. It is the #1 exporter in the world. The German DAX was down 5.28% today (Monday), and is now down 30% in 2 months (see chart, next page).
I commented in the note sent on Saturday that the European banks were being crushed, and considering that the US market is closed today for Labor Day, that if Europe was down on Monday (today), gold could shoot up. It has done exactly that, and is now trading above $1,900.
I suggest:
1) This is absolutely terrible stock market action. Tuesday could be an ugly day in our market. September and October are traditionally weak and volatile. If the DJIA breaks below 10,600-10,700 (the low of early last month), it could fall another 10%. Extreme caution is indicated.
2) You must own the precious metals. Any of you who at any time have invested in the precious metals on my recommendation are ahead—way ahead. I don’t know if gold will go straight to a new high and not look back (less likely), or back off and continue in its consolidation phase (more likely); but whatever it does, the window of opportunity to establish or add to your precious metals position is rapidly closing.
The only conclusion I can draw is that people are losing confidence in the financial system, as evidenced by the trashing of the big bank stocks, the world-wide fall in the stock markets, and the explosive upside action of gold. Please be careful.
RMD
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