The Implosion of the Commodities Bubble

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Reedited on July 13, 2013

Added to the growing list of accurate forecasts made by our chief investment strategist, Mike Stathis is the prediction of the correction in the commodities bubble.

As subscribers to the Intelligent Investor know, Mike Stathis first warned of a correction in the commodities bubble in the February 2011 issue of the Intelligent Investor. 

Notably, Stathis also predicted the prior commodities correction in the 2006 publication of America’s Financial Apocalypse.

Although he discussed that a correction was imminent and in large part irrespective of the forward strength of the global economy, by 2011 Stathis felt the global economy would gradually weaken due to the depletion of global stimulus combined with misguided austerity in much of the advanced world.

It was this weakening of the global economy which would supersede any inflationary forces that were in play.  

Thus, the lack of demand (a deflationary force) would serve to push commodity pricing down, thereby neutralizing the inflationary effects of quantitative easing (which have been exaggerated by the gold charlatans and the doomsday crowd).

In contrast, throughout 2010 and 2011, you might recall that many so-called “experts” were claiming commodity prices were headed much higher as a result of quantitative easing (Peter Schiff, Jim Rogers, John Williams, etc.).

In fact, it’s nearly impossible to locate a single gold charlatan who stated that quantitative easing would not cause commodities to soar because these guys are, well…to be blunt, they are all pinheads.

Remember that these pinheads are still screaming their hyperinflation mantra. How many years has this fear-mongering gone on now?

Today, they are still insisting that hyperinflation is "coming" despite the fact that inflation is well below average and deflation is more of a concern. 

You might recall how Stathis completely slammed John Williams' credibility into the toilet and flushed it with this landmark piece. See here for the article.

Not a single gold bug has ever even attempted to refute Stathis' critical analysis of Williams, or his discussions on gold. Even Williams himself has been silent, even though we know for a fact that he read it.

The reason for the lack of response is that no one can challenge anything Stathis has to say, especially when it comes to exposing charlatans and idiots.

No one in the world can detect con men and clowns better than Stathis.

Even Kitco's senior gold analyst emailed Stathis to praise him for the article on Williams. See here for the article.

Here’s what Kitco senior gold analyst Nader said to Stathis about the Williams article…

“If EVER there was a more cogent, cut-to-the-chase, honest, devastating article about EXACTLY what is going on out there in this industry at the moment, well, your article has to be IT.

 

Honestly, I am stunned at how well you seized on the situation, and could not be more in accord with what you wrote.

 

I will try to open people's eyes with your excellent analysis. Take it from someone who has been in this industry since 1977. You are SPOT ON. Kudos to you.”

That's right. The person you'd least expect to confess that Stathis' analysis about gold was spot on, the top gold analyst at a huge gold company, went out of his way to tell Stathis that his analysis on the gold manipulation by guys like Williams and such was spot on!

Of course you can tell from the email that Nader clearly had no idea that Stathis is the leading expert on the economic collapse and one of the world's top investment minds. Maybe now, he realizes this.

Keep in mind that we don't get paid to warn people about the gold manipulation by the gold charlatans. We have done this as a public service. Remember that when you lose your ass on gold after not having had the benefit of coming across our research.

The reason why you didn't have a chance to access Stathis' views was due to the media and websites you have trusted for unbiased and accurate insight. The best way to defeat these con artists is to stop tuning in so their ad revenue will suffer.

Ask yourself this critical question. Who else would spend so much time and effort to try and prevent Main Street from losing their ass when it doesn't bring them any money for their efforts?

If you're not already aware, Mike Stathis is THE only financial professional on the side of Main Street.

We have no agendas and no bias and we CANNOT be bought off, unlike thousands of faux heroes, many of which are covered in our ENCYCLOPEDIA of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes.

See here for this critical article which rips Williams a few thousand NEW ASSHOLES and blows the lid off of the manipulation of gold by the gold charlatans.

After you read that article, I'll guarantee you will have learned more about gold and related topics than you have learned after having read one hundred other articles that haven't been written by Stathis.

As the gold charlatans and their minions continue to scream "hyperinflation" and more bologna, the U.S. stock market continues to make new all-time highs while gold continues to collapse.

Remember, these are the same bozos that have scared their naive followers to stay out of the U.S. stock market, causing them to miss the greatest bull market rally since the Great Depression.

Quite simply, if you have listened to the so-called experts plastered all over the media you’ve lost a great deal of money.

Anyone who has paid close attention to the calls made by Peter Schiff will tell you that he has been wrong much more than he has been right.

You'll always find this same situation with guys who make regular appearance in the media because they are salesmen, not real analysts, strategists, fund managers or whatever else they call themselves.

Hopefully by now you realize that every so-called “expert” in the media is nothing more than a yapping billboard that should be utilized as a contrarian indicator.

In our February 2011 Commodities analysis we laid out three levels of correction we felt would ensue in the CRB Index, each level based upon how much the global economy would weaken.

During the same time period, Peter Schiff told the sheep who watch CNBC that commodities would soar.

[As many of you may already realize, the CRB Index is the standard for assessing the commodities market because it contains several commodities from each of the commodity categories.]

Now here is the chart we published in the February 2011 Intelligent Investor (excerpts of this report can be seen here).

[See the PDF attachment at the end of this article for an excerpt]

At the same time, we have remained bullish in the U.S. stock market since March 2009, and we have correctly predicted every major market sell off since then (including the 6400 Dow Jones lows).

So who was right?  Schiff or Stathis? 

By now you should realize that it's going to be a cold day in hell when Schiff is ever right over Stathis. Since that time, the stock market has soared and commodities have collapsed.

Since this bearish warning on commodities was published, we have been reminding readers of these three levels in every issue of the commodities forecasting report.

For example, the following charts (April 2013 and July 2013, respectively) show the collapse of the CRB Index since Mike forecast the collapse of commodities in February 2011.

As you can see, the CRB has already collapsed to the first level he discussed. Obviously, Mike's brilliant forecasting abilities have enabled us to provide remarkable trading guidance for the commodities covered in the Intelligent Investor (CRB Index, cotton, corn, wheat, soybeans, sugar, milk, rice, Brent crude, WTI crude, Henry Hub natural gas, gold and silver).

And we have been helping subscribers make profits with our monthly forecasts, which have been approximately 85% accurate on a monthly basis.

We have included excerpts of this forecast here.

So where is the CRB headed from here?  

Where are gold and silver headed from here? 

If you want to find out you will subscribe to the Intelligent Investor.

Regardless where the commodities are headed, we have a proven track record of accurate monthly forecasts that has enabled subscribers to lock in easy profits.

Of course commodities forecasting is only a small part of the research provided in each monthly issue of the Intelligent Investor.

We also include our famous market forecasting section, which covers the Dow Jones Industrial Average, Nasdaq and the major market ETFs from China, India and Brazil.

We also include foreign currency forecasts (USD versus euro, yen, franc and real).

We also include securities analysis and trading guidance (approximately 15 securities).

Finally, we also include a global economic analysis.

Click here to see our Very Special Promotion for July

The fact is that Mike Stathis has risen to become one of the very top investment minds on earth. And his track record and insights continue to prove that on a daily basis. If you aren't aware of this, it means you simply don't know his track record.

Have you ever wondered why NO WEBSITE has EVER criticized Stathis' views on gold?  

The answer is obvious. BECAUSE THEY CAN'T ARGUE WITH THE FACTS.

Have you ever wondered why you've never seen mention of Stathis or his amazing track record on any websites?  

Again, the answer should be obvious. Most sites are doom and gloom and they sell advertisements that support the doom fantasies, so the last thing they would want to do is let people know about the leading expert in the world on the economic collapse; doing so would ruin their advertising income.

Don't you find it odd that the only person in the world to back his track record with a $100,000 claim isn't being mentioned anywhere? 

The answer again is obvious. The internet is filled with deceitful opportunists who seek to make money by steering their audience into the trash bin, pumping gold and going along with the doomsday delusions crated by Peter Schiff, Alex Jones and the rest of the charlatans.

The fact is that unless you are receiving the insights and research provided by Mike Stathis, you're being screwed.