Bearing in mind that I am not a licensed financial professional and thus cannot offer financial advice, here's my personal opinion about the ongoing stock market drops: It's just the Bankers getting rid of stocks they accumulated during ultra-cheap Interest rates from the fed. It is NOT a "panic" by the general public.
I come to this conclusion based on the simple fact that the price of Gold is NOT going up . . . in fact, it's been going down!
It seems to me this means that the cash resulting from the stock sales is going "somewhere else" and NOT into precious metals. To me, that translates into Bankers selling-off their accumulated stocks and using the cash to pay back funds they borrowed at ultra-cheap rates from the federal reserve. In short, the stock market drops these past days are not important.
If there was fear among the general public, the cash leaving stocks would be instantly used to buy Gold and the price of Gold would be skyrocketing. That's not happening.
If I'm right, then for the next couple days, stocks will slightly rebound, with another sell-off coming on Monday.
Again, I am not a licensed financial planner and do not offer financial advice. Before making any investment decisions, consult with a Licensed Financial Professional.
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