“If you look closely at the chart below, Wave D is in the process of topping, and this will lead to a collapse that will take the Dow Jones down to roughly 5,700 (see right hand side of chart below).
Also, if you look carefully at the center of the chart, when the U.S. stock market was collapsing and otherwise struggling in the mid-1970s, gold and silver were going up dramatically. You can see this from the action in gold and silver, which is indicated by the silver and gold lines. This always takes place as Wave E is declining, and that is the phase we are now entering.
This chart has not failed one single time since 1913. This is the story of what the Federal Reserve and our government have done to the markets in the United States of America. You can see that in 1913 we begin four major waves and we are now in Wave IV. That dotted collapse you see in the upper right hand side of the chart is the beginning of the disastrous collapse we are about to witness.
The only way this stock market collapse can be avoided is if the people running the Federal Reserve move the United States into a dollar destruction that rivals what took place in Weimar Germany. Even though the German stock market soared during the Weimar Republic, gold and silver far outperformed the German stock market. The same will be true this time if we see hyperinflation in the United States.
So if we were to eventually see gold and silver skyrocketing, along with the Dow and the S&P continuing to rise together, this will indicate that our government has embarked on a disastrous Weimar-style hyperinflation. However, if Leg E continues down in the Wave IV pattern, we will see a major collapse in the stock market averages. This will be against the backdrop of skyrocketing gold and silver prices. But either way, gold and silver will be the items to own. There is no other choice for investors who want to survive what is coming.”