How Would Gold Perform In a Second Stock Market Crash?
Jeff Clark, Senior Analyst, GoldSilver.com
MAY 22, 2020
and now 2020?
In the biggest stock bear markets over the past nine decades, there was an initial crash
followed by a big bounce
and then a more severe selloff, a second leg down if you will.
Could it happen again?
As Mark Twain said, history doesnt repeat itself but it often rhymes.
And some of the worlds most successful hedge fund managers are convinced a second drop is coming
> Billionaire David Tepper, considered one of the worlds most successful hedge fund managers, said last month that stocks are the most overvalued Ive seen in my career.
> Stanley Druckenmiller, whose net worth is $4.7 billion, says the risk-reward for equities is maybe as bad as Ive seen it in my career.
> So-called bond king Jeffrey Gundlach says, Im certainly in the camp that we are not out of the woods
I think a retest of the low is very plausible. He said at the same time that he initiated a short position against the stock market.
> Billionaire Mark Cuban says the stock market is overvalued
its almost impossible to predict where consumer and corporate demand is going to come from. And because of that, its hard to create a valuation for businesses.
With trillions of stimulus flooding the market, I dont know if were looking over the cliff at another crash in the stock market or not. Even Mike Maloney mentioned that stocks could just as easily melt up as they could melt down.
But if we do get another leg down, I wanted to know
what happens to gold in the crash after the crash?
Gold in Second-Leg Crashes
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