5 Forecasts for When the War Cycles Converge

With all my talk about the “War Cycle Convergence” … you’re probably wondering:

Which markets will outperform … and which ones will get pounded?

As I said before, this new convergence of War Cycles will also coincide with the last stock market boom of our lifetimes — a boom that too many ordinary investors will miss out on due to bad advice and even blind panic.

Now, the last thing I want is for you to miss out. I want you to be informed and prepared. Because while the disruption caused by the convergence introduces risk, it also introduces opportunity. If you know what’s coming.

So, without further ado, here are my five War Cycle convergence forecasts.

Forecast No. 1: The U.S. dollar’s last hurrah.

While the U.S. dollar has not yet lost its “reserve” status for global trade … it’s only a matter of time.

With the emerging markets of Asia and Latin America are rising like zeniths …

And with so many countries gaining market shares and contributing to global GDP like never before …

It simply isn’t reasonable to expect the dollar to dominate world trade forever.

But here’s the irony: Even though the dollar’s destiny is sealed — in a financial crisis, it’s STILL the reserve currency by default.

That means when global war breaks out, the dollar will get a shot in the arm as everyone goes into “risk-off” mode. Investors will sell their assets and park their money in the “safest” currency:  The U.S. dollar.

And with the back wall of the financial hurricane about to hit — and the war cycles ramping ever higher — the dollar has one more Hail Mary pass before it resumes its long-term bear market.

Which leads me to my next forecast …

Forecast No. 2: Gold is beginning a major new bull market.

I explained last week how the war cycles are going to cause precious metals to soar. This is a major shift from just a few years ago …

Back then, nearly every gold expert was predicting a straight-up move in gold. But my friend and colleague Larry Edelson and I predicted a major decline. We foresaw beyond that decline a better buying opportunity waiting ahead.

And that opportunity is NOW.

Any meaningful corrections from this point forward will give you another chance to add to your gold positions … and make a true fortune as the yellow metal heads to somewhere north of $3,000 an ounce.

Now, onto my next area of major concern …

Forecast No. 3: The sovereign bond market is headed for disaster.

This one is a no-brainer.

The governments of the U.S. and Europe are bankrupt. There’s simply no way they’ll ever make good on their outstanding bills — not to mention their promises of Social Security, healthcare, pension guarantees and more. They won’t be able to inflate the debts away as so many expect, either.

As a result, no matter how hard central banks work at keeping interest rates low, the sovereign bond markets of the U.S. and Europe are facing votes of “no confidence” from their investors and creditors.

The values of their sovereign debt instruments are destined to slip and slide substantially lower!

Of course, that leads us to …

Forecast No. 4: Europe — and the euro — will collapse.

Many think the euro will survive. Or they believe Germany’s economy — which is hanging in there — will support and uplift the rest of the European Union. They think it’ll be enough to end the European sovereign debt crisis.

But this view is dead wrong according to my models.

That’s why the biggest surprise of all for the coming months will be the crumbling of the E.U. and a collapse in the value of the euro.

Savvy money will soon begin to leave Europe’s banking system in even greater droves, causing the euro’s bear market to turn into a tidal wave of money exiting the currency. As it does, the seeds of destruction will grow like weeds in the European Union.

Forecast No. 5: The Dow will explode to 45,000.

I’ve already discussed this in a previous article, but allow me to repeat myself:

“Fear money” will drive the Dow Jones to 31,000 — and maybe even as high as 45,000 over the next year or two.

As I said, if you understand the way capital flows like a powerful undercurrent through the world, you will be well positioned to make a fortune over the next several months as most U.S. stocks soar higher.

What’s more, as Western governments teeter and the banking system crashes again — and believe me, it will — U.S. stocks will be deemed safer than just about anything else.

This is the most direct, measurable consequence of the War Cycles’ convergence.

And it’s the biggest single opportunity for investors in the U.S. and abroad.

The next three years will go down in history as the time when all hell started to break loose. They will be remembered as the years when the world was turned upside down … when everything you thought you knew about the markets was largely proven wrong.

New trends will emerge. Relationships between asset classes will change. Geopolitical turmoil will ramp up at a feverish pace.

And there will be more money to be made — and lost — than ever before!

All the best,

Sean

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Comments 6

  1. Gary Barnes March 18, 2020

    What do you think about 31,000 or 45,000 now?

    Reply

  2. David February 18, 2020

    With supply chains breaking, record high corporate debt will put pressure on the market. Where’s the weakest links????

    Reply

  3. George Mast February 18, 2020

    Jeffrey, your correct predictable, and rather aggressive on gold. the Melt Up in the Dow in the near term, but remember the dumb money, and gold money seem to play investments at different levels, and in a different way. So, please do not short gold, as aggressive levels, gold waited a long time to gain a realistic price (increased in the last 5 or so years). Remember the debt will be equalized with a increased price in PM’s especially gold. If one takes the number/amount of debt and equates it to gold held as investments, do you see the potential for $10,000.00 or $25,000.00 or yes even $45,000.00 is possible.

    Reply

  4. WILLIAM February 18, 2020

    Does this also mean that treasury bills and other short term treasuries will also fail? it wasn’t too long ago that Weis research stated that Treasury Bills were the safest investment around

    Reply

  5. Jeffrey February 18, 2020

    Somewhat predictable forecasts but rather aggressive on gold when considering the Dow forecasted to go to 45,000.

    Reply

    • Peter February 23, 2020

      Jeffery, just realise that although the big smart money players have access to any market they deem profitable, most small investors outside the USA don’t have access to the US markets. 100’s of millions of small investors around the world seeing their local stock markets tank, currency dropping, banks failing and bailing in, realestate dropping will be watching gold / silver / SP500 rising, but gold and silver will likely be the best available asset they can access. A hundred million people all wanting to buy an ounce of gold or silver will light a fire under them.

      Reply