MAR 5, 2018
Market bubbles happen, and they after often preceded by similar indicators; teeming consumer debt, a long period of low interest, nosebleed valuations. Check, check, and check.
Wars also happen. James Rickards lays out that they, too, are preceded by a specific cycle of economics. And we just moved to Phase 2 of 3.
A full-scale trade war is now upon us. It will shake markets and be a major headwind for world growth. It will get ugly fast and the world economy will be collateral damage.
Next comes the shooting war with North Korea, which will inevitably draw in Russia, China, South Korea and Japan. This will be tantamount to World War III.
Now is a good time to reduce your allocation to stocks, increase your cash allocation to reduce volatility and increase your exposure to gold as a safe haven.