In a recent appearance on CNBC, former Republican congressman and outspoken libertarian Ron Paul suggested that those euphoric stock market investors who’ve seen monstrous gains in their portfolios for years now…might want to re-think their positions just a bit before too much more time passes.
Paul, speaking on “Futures Now,” echoed the sentiments of a growing number of learned voices who believe not only the market activity of recent years is unsustainable, but that the underpinnings of the nation’s economy are not nearly as strong as many think. As a matter of fact, Paul thinks that the market is in for a major correction, and that precious metals will benefit from the significant backslide in equities.
“If our markets are down 25 percent and gold is up 50 percent it wouldn’t be a total shock to me,” said the congressman.
“I think it’s a very precarious market, and the Fed better be very careful. Since they are incapable of knowing what to do, I don’t expect much good to come out of anything they do,” Paul continued.
“There are so many mistakes made out there that the correction is almost unlimited.”
Paul conveyed the thinking of many right now when he added:
“People have been convinced that everything is wonderful right now and that stocks are going to go up forever. I don’t happen to buy this. The old rules always exist, and there’s too much debt and too much mal-investment. The adjustment will have to come.”
By Robert G. Yetman, Jr. Editor At Large