Market is ready for a long bear market

Bill Bonner at The Daily Reckoning wrote this before today’s $100+ drop in the price of gold. Interestingly, he also thought gold might go down, perhaps for some period. Is he discouraged? Hardly, he believes it would be crazy to divest of gold and expects one ounce of gold to eventually be equal to the Dow Jones at some point.

His guess is as good as mine or yours. Here are some other guesses:

We’re also guessing that…

…the weight of so much debt is depressing growth…and will soon depress stock prices too…

…that the economy is becoming zombified from too much government money…especially the military…

…that Mr. Market is ready for a long bear market anyhow; he’s tanned, rested, and ready to go to work

…that the US is following in Japan’s footsteps…towards a long period of on-again, off-again recession

…that the recession of ’08-’09 in the US never actually ended…

…and that stocks will go down over the next 5-10 years until they finally hit a real bottom.

But wait. Here comes the San Francisco Fed. Can you believe it? It agrees with us.

My opinion is worth what you pay for it. I believe gold is in a correction (FINALLY!!) and intend to buy more. Perhaps not right away. Regarding the points above, I believe in them even more strongly than I do the continued rise in Gold. You make your own decisions.