Ron Paul Says Buy Gold, 50% Stock Crash to Come

Some say we are in a roaring economy looking for continued growth, especially considering how low interest rates remain.

Then there’s Ron Paul, who says we’re once again in a big fat bubble that’s about to pop.

The retired congressman and one-time presidential contender is aggressively recommending that investors buy gold to protect themselves from a major correction in the equity market.

“The deficit is skyrocketing like never before,” Paul said in an interview. “The market is destined to go down.”

One major reason Paul believes the equity market will decline is due to the Federal Reserve’s quantitative easing (QE) program, which pumped massive liquidity into the markets.

10-Year Gold Price. Source: GoldPrice,org

All that cash has fueled significant bubbles, Paul believes. He thinks stocks could fall 50% from current levels.

Paul’s comments came as the Dow started the month of May in the red and started to look like a potential correction was on the horizon.

Stocks have been volatile since the start of 2018. The S&P 500 is slightly negative year-to-date through Friday’s close.

Even though stocks are under pressure, Paul argues that the stock market is still far too pricey.

“The fundamental reason is that we’ve had too much printing of money — especially since 1971, especially with the QE. So, everything is artificial.

“There are big bubbles, so stocks are basically higher,” he said.

A real mess

Paul argues that due to growing deficits the stock market isn’t actually getting stronger. Rather, prices are increasing artificially high, which is creating a “real mess.”

“Ultimately, when these corrections have to occur, they always go down a lot more than people expect. Just like they go up higher than people expect,” Paul said.

“A 50% correction with all the distortion that has existed for all these years — I think it’s very possible.”

Paul likes gold as a safe haven and he sees major potential to expand his exposure to the metal given these current market conditions.

Despite the fact that he already owns it, he plans on buying more.

How do you feel about Paul’s announcement? Are you bullish on equities or do you agree that it’s time to hop on the gold bandwagon? Let us know!

Small-cap winners galore

The big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
Click here

Smarter cryptocurrency investments

The stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.
Learn more