GST Issue #211
Dear Member,
Looks like you’re properly positioned now! This morning, U.S. GDP was announced at a very meager 0.2%, much worse than the 1% forecast of economists and less than one-tenth the 2.2% growth rate of last year’s fourth quarter.
At the same time, corporate fixed investment plunged 2.5%, a huge reversal from the 4.5% growth in Q4 2014. Exports also tanked at a 7.2% rate, courtesy of the strong dollar, while core inflation slowed to a 0.9% annualized rate – the slowest in more than four years.
I told you deflation was coming here, and this latest news confirms it. This should mean …
* Lower stock prices ahead, even if the Fed holds off on raising interest rates, which it will do.
* Lower interest rates overall, as deflation gains a bigger foothold in the U.S. And …
* A possible short-term rally in gold, to be followed by another wave of precious metals deflation thereafter.
Therefore, I am happy you got positioned yesterday by purchasing the Direxion Daily S&P500 Bear 3X ETF, symbol SPXS …
As well as the Direxion Daily 7-10 Year Treasury Bull 3x Shares ETF, symbol TYD.
If, for whatever reason, you did not purchase the above yet, please refer to yesterday’s issue #210 and make those trades now.
As to gold, it has not shown me enough yet to say with confidence that it could stage one more rally. So sit tight, I’ll keep you posted.
Hold all positions and related stops, and stay tuned. The rest of this week is shaping up to be exciting, to say the least.
Best wishes,
Larry
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