Gold is attractive and mouthwatering below $1100. Really? One question that has always fascinated me what happens when asset enters in a structural Bear phase. How Low and How bad it can get before it becomes better?
Let me share few charts to help you understand this
Classic Japan Nikkei 225 Chart
Twenty two years...Japanese market suffered with downtrend. NASDAQ made new high above 5000 after 15 long years.
Look at the Sugar chart. How consistently it has been declining after every small bounce
What does this mean?
Avoid stock/asset when it enters Bear market because you never know how long can the pain last and how low asset can go. Remember, Last time Gold was in Bear market for 20 years. Nobody knows what will happen this time. It is much safer to buy asset when it shows real evidence of turnaround rather than jumping on every small decline.
Do not make any Investment decision based on this post. I am just sharing my thoughts. Always apply your own logic when it comes to making investment decision. Nobody knows what will happen
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers