16:10 GMT +312 November 2019
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    Brave New World

    Dead Cats Bounce

    Brave New World
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    The view that the world’s economy will chug along as usual may be one presumption too many. If we take a serious look at the facts, not the politics, there is clear evidence that we are heading into another period of real financial turbulence.

    Richard Knight, a British client advisor at Key Investments reveals his view of what is happening. “A lot of people base their analysis on fundamentals like interest rates etc., I ignore that approach, mine is purely technical, it’s what the charts tell me, and from experience, the charts don’t lie. Politicians do.”

    Richard gives a short history of the global financial situation, and describes the present situation as the culmination of a bull market that has been going on and on and on. “Unfortunately, that’s actually not good. In the words of our friend, probably the most influential investor in the world – Warren Buffet: ‘when the markets go up they take the stairs, when they go down they rake the lift.’” The charts now, Richard says, are showing “exactly the same pattern as in 2007/8. It’s not even close, it is exactly the same.”

    Richard sees a minimum 10% correction, “everybody’s expecting that, probably over the summer months.”

    In this interview, Richard explains why he is so sure, and describes the market as being something that always returns to its average, thus what is happening now is an aberration from the norm. He also outlines what strategy investors should adopt from now on. The program ends with a revealing discussion on the price of gold.

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    Tags:
    gold, economic crisis, dollar, investment, Warren Buffett
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