Jordan Roy-Byrne: Precious Metals Need Equity Market Weakness
Jordan believes that a strong rally in precious metals will not occur until further equity market weakness. He says the problem is that the people who invest in gold stocks have lost a lot of money and don’t have the buying power to move this market forward.
When the stock market begins to weaken, the mainstream and fund managers are going to be looking for things that are not correlated to the stock market.
Jordan also points out that a cyclical top in the stock market has often coincided with a cyclical bottom in gold.
When looking at the stock market, Jordan sees record fund flows entering the market. Yet, despite this influx of new capital, the market has seen very small gains, indicating that the smart money is exiting. Jordan believes that we are at or nearing a top for the general equities.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association. He is the publisher and editor of TheDailyGold.com, a publication which emphasizes market timing and stock selection for the sophisticated investor.