Rising Global Tensions Can Make You Big Money

One of the most important aspects of the rising tide of geopolitical disruptions — as spelled out by the research I have done on war cycles — is how they are impacting the world’s financial markets.

As I’ve discussed many times in the past, they are changing everything you thought you knew about investing.

Consider the U.S. property markets, which have already recovered from their lows quite nicely — even as mortgage rates have stabilized and started moving higher.

Consider how the Chinese and Europeans, as well as the Canadians, are now the biggest foreign buyers of U.S. real estate, which is helping to support that sector.

Consider that recently, a Chinese-led investor group announced it would buy the Chicago Stock Exchange.

Or that there have already been 82 Chinese outbound mergers-and-acquisitions deals announced this year, amounting to $73 billion in value, according to Dealogic. That’s up from 55 deals worth $6.2 billion in the same period last year.

Or consider gold, which is now nearly 16 percent above its bear market low of last December, moving up right on schedule, even though the U.S. dollar also remains strong.

Or the U.S. stock markets, whose bear market correction is continually being supported by foreign capital inflows.

You are going to see and hear more about foreign-capital inflows in the months and years ahead. Inflows that will shock you and cause wild moves in markets that defy logic.

Moves that dumbfound most U.S. analysts, especially those — the majority of them — who still focus merely on the U.S. economy and who ignore what’s happening on a global basis.

Gold will rise with a stronger dollar.

Gold will rise with a stronger dollar. Commodity prices in general will soon bottom and head higher, even though the global economy remains lackluster at best. Oil, for instance, has already bottomed, again right on cue with my forecasts.

Equity markets and property prices will increase with rising interest rates.

So what then is the common denominator behind these market moves?

What’s the fuel that is causing the linkages between them to change, wreaking havoc on old rules of thumb and ushering in new relationships between markets, between economic data and logic …

Creating forces that you must grasp to truly protect and grow your wealth?

It’s geopolitics and international capital flows. Reasons:

Today, we live in a world where governments are at war with each other. Propaganda wars. Trade wars. Currency wars.

Today, we live in a world where governments are getting ready to reignite “hot” wars: Russia/Ukraine. China/Japan. Israel/Gaza.  Then, there’s ISIS and its rampage in the Middle East.

And today, we also live in a world where the bankrupt governments of the West are waging wars against their very own citizens, via tax hikes, confiscatory schemes, and capital controls.

All of this is causing capital in nearly every corner of the globe to take flight, leaving risky countries and investments and heading toward safer shores.

For many months now. I have told you that those capital flows are pointing directly toward the United States. Savvy European investors are moving their investments out of Europe in droves.

Middle Eastern money is also coming to our shores. Savvy Chinese investors are investing in the Unites States hand over fist, and especially in U.S. property markets.

My view: Based on how the war cycles are ramping up for another five years and how they do not show any relief until 2020, capital is likely to continue to stampede into U.S. investments.

Reason: Despite our country’s problems, we remain one of the safest countries on the planet, with the most open, liquid and diverse markets in the world.

My words for you: Follow the money going forward. The international capital flows. They are the single biggest key to protecting and growing your wealth now and for many moons to come.

Best wishes,

Larry

P.S. We are on the cusp of the most profitable bull market of our lifetime. Stocks will be driven higher by powerful global undercurrents that Wall Street will either ignore or fail to understand. As the Dow doubles, some stocks will see explosive gains of 300%, 400%, 500% and more. Savvy investors who make the right moves will become very rich! Click here for my free report and to find out how it could make you rich beyond your dreams.

Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader. Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.

Comments 57

Dd February 24, 2016

But what about the stock market? Has it bottomed or are you still expecting one leg lower?

Carman February 24, 2016

You did not mentioned whether gold has bottomed or not. Also before you said the US market would drop before going much higher. Now you sound as if it is all uphill.

GP February 24, 2016

What is going on with Gold and oil?...I sold all my gold holdings yesterday (both physical and stocks) based upon your super trader recommendation...and purchased oil stocks...and that very same day both moves went the wrong direction! :( I realize that no one has a perfect crystal ball, but making strong recommendations like this and then having them turn exactly in the opposite direction certainly leaves many of us scratching our heads.

moon February 24, 2016

I have the same question. Larry was saying gold would fall down to $900s. Have you changed your mind since then (December) for sure? I was following your forecast and did not take an action earlier.

John T February 24, 2016

Or consider gold, which is now nearly 16 percent above its bear market low of last December, moving up right on schedule, even though the U.S. dollar also remains strong. The bottom in gold I’ve been forecasting will be here soon. OK Larry which is it, Larry speak for I do not know.

Gerald February 24, 2016

GP, I agree w/ you 100%, But this is not the first time Larry has said sell or buy and it does a complete dive or moonshot. I always wait a few days to sell and a few weeks or months to buy when it almost hits his stop/ loss price. Like when he told us last time (couple of weeks ago) to sell half of our gold and silver shares and gold shot up $50 and silver $0.45 cents. Or when he said sell your shorts in Oil in December and in Jan. You could have tripled your money if you held on a few more weeks. Instead we all took a beating cause he said buy UWTI. Or FCX wait until it hits his stop/ loss and then buy you would have doubled you monies. Even if we pay very good money for Super Cycle trader, We have to take his information w/ a grain of salt and use that information and your own gut feeling sometimes to do the exact opposite. Good Luck, And Happy Investing!

huanjo February 24, 2016

"The bottom in gold I’ve been forecasting will be here soon." That's an advertisement you read. Obviously they haven't updated it yet.

Sohail February 25, 2016

Larry has a great record at predicting cycles and warning of things to come. However I do not believe anyone can predict bottoms. I have been reading for the last three years that a bottom is imminent.

john t February 25, 2016

Precisely the point.

UDO February 26, 2016

moon read my comment at the bottom Feb.25th If Larry is as good as Armstrong you will get disappointed many times over about gold . Armstrong's calls for gold are no better than 50 % correct - not better than average. Some times he gets it - most of the time he does not . Only the ones he got gets published and everybody thinks he is a guru . It's the most disappointing thing I finally discovered after many years of reading . The proof is in all of his writings on his website .

UDO February 26, 2016

GP one day does not make things wrong . Did Larry said SELL miners and gold ? I would say that is a good call . When did he said BUY ?

Ian February 24, 2016

Do you think there is an imminent demise of the Petro dollar and how would it affect these capital flows.

Ray February 24, 2016

Oil has bottomed ?? Why no reco's in your Real Wealth Report ??

wayne westfall February 24, 2016

Hi Larry.......thanx 4 your wisdom but i am confused is the market dip completed or do u still see 1 more big leg down before it breaks out upside? many thanx!

Andrew February 24, 2016

I agree with the earlier comment , frankly ,its confusing reading your story. On one hand you mentioned about Dow heading lower and on the other you are so bullish because all over the world money is pouring into US buying stocks and property etc.. Secondly many of your team members are advising investors to hold cash and if not possible , just keep those with solid fundamental or hedge with inverse ETF. I hope you could be more specific .Thank you

RJ February 24, 2016

it appears to me that many of these market forecasters have stories that are bullish then later bearish or visa versa. Then a year later can point to the story that proves their forecast. most people wont remember the opposite forcast

UDO February 26, 2016

RJ you are smart - you figured it out how it works . And Larry follows Armstrong who says " There is no one sided Forecast " Have you ever seen how Armstrong covers his forecast ? From 1 to 100 - somewhere in between . He always will look good because truthfully ? Nobody can guess the right numbers .

"KING" Ralph February 24, 2016

The world is going to hell in a hand basket so what's the diff,?

Al February 24, 2016

Larry's statement in this article "Or consider gold, which is now nearly 16 percent above its bear market low of last December, moving up right on schedule, even though the U.S. dollar also remains strong." is another indication of his double speak. First of all if gold moved according to his or any schedule, we would all be rich. My father had an old expression that went "If your so smart why aren't you rich?" ... I can't fault Larry for wanting to be rich, however, he would have you believe he is smart, yet the way he makes his money is by taking yours. One reader suggested that he hoped Larry could be more specific. ... Larry, and everyone else on this planet can not be specific ... The market will behave the way it wants to and if anything, the culprit currently is good news-bad news and the horrible debt situation causing us investors to get on Larry's seesaw ride.

John T February 24, 2016

But in last December he wasn't even talking about that one, the gold price is up about $190 since then. He does not show many charts, nor describes his analysis. I do not follow Larry's advice, he speaks with forked tongue.

JohnLamb February 25, 2016

Larry pointing directions is better than a lot of other predictors, but he isn't a medium. We have to take his general predictions and apply some common sense as well as some investigation of our own. He did say that gold would be down during December 15 when it would turn. Gold made a nice cup between mid November15 and midJan16. Thereafter it continued upwards. Your decision to buy or not. Oil is not only impacted by pure supply and demand. It also has countrie's policies and needs impacts as well as wars in the regions of the cheapest producers. eg. What would happen if the Sharia Moslems at the East of Saudi revolt and start burning wells? Oil will spike!! What are the chances? About 8 to 10%. That's better than betting on a number on the roulette table. Would you play? That's not investment, that's gambling. If that's what you want to do, then do it with money you can loose without kveching. Otherwise at present stay in money, not bank cash, MONEY as defined by JP. Morgan without counterparty liabilities. Gold, silver, until the world finds its new balance. Companies with positive Balance sheets, companies that supply mundane life sustaining products, bread, flour, tinned foods, personal hygiene products etc. Coke is still selling so is Nestle, and others of that ilk. Do your research, stay away from Monsanto it's loosing money. Good luck. John.

Chuck Burton February 24, 2016

In his Flash Alert, yesterday, Larry said nothing about oil, but he did predict a sharp, tradable jump in gold, followed by a fall to a bottom in June. Final bottom? He didn't say. I've been following the 2 1/2 year down channel, which gold recently overshot the top of, before retreating into the channel. I see that it is again pricking the top of the channel this morning. If it firmly violates that top line and successfully retests it, that would fit with Larry's tradable jump. He talks about resistance at 1386, perhaps to precede the June bottom. There is another, probably weak, downtrend (about paralleling the recent channel) from the 2011 and 2012 peaks. Gold would need to break that before really taking off.

Larry King February 24, 2016

Did he say the bottom is so close he can taste it? Then finish off by saying he's right as rain, even though he's not? If so, proceed to check out.

F151 February 24, 2016

I think $1270 is a good short term goal...then back down.

hillaréé February 24, 2016

forget about the dollar, chuck. currencies go up and down in response to many things. the dollar is going to do what the dollar is going to do. it's not the other way around.

hillaréé February 24, 2016

keep it simple. stocks go up, gold will go down. when do you think stocks will go up again would be a better question. because gold will go down.

Gerald February 24, 2016

Chuck, Larry did mention oil yesterday in his flash alert " Let’s talk oil now: It’s had a very smart rally again, bringing the nearby futures contract (April contract) to as high as $33.84 yesterday, before settling back down to the current $33.20 level. All signals remain on track for the forecast rally I showed you in my timing chart, repeated here." But just like oil and everything else you will almost always need a double bottom before taking off to the upside. We already got it in Oil, Nat Gas, And now we need it in Gold and Silver. What are the charts telling you in the Markets ( Dow, S&P, Etc.). I do not think we have had a Double Bottom yet? So we must have a Retest of the Lows Before heading to the Upside. What do you think about OIL going Higher and the Markets going lower? So far I have been fighting this tend in a losing battle, But I hope this will change soon. Good Luck and Happy Trading!

$1,000 gold™ February 24, 2016

think of the dollar as a barometer that measures the weather, not a force the moves the weather.

$1,000 gold™ February 24, 2016

gold's big picture is always the antithesis of stocks. secular stock bears equal secular gold bulls, just like what happened over the past decade or so. gold will go on the shelf and collect dust for decades during secular stock bulls.

gypsy gene February 24, 2016

Uncharted Waters! VIX gone wild. No two cycles are exactly the same. But you must be doing something right since RWR had an 18 percent take last year. Political shifts and election years are often times of challenging markets. Customary Fall bottoms are not foreseen this year? How come set stop are recommended and trailing stops are not? Is there a brokerage squeeze taking place? Thanks for the flash alert this week. This is understandably a time of caution.

GAUTHI February 24, 2016

you like to flip flop

hawk5000 February 24, 2016

i like to just flop.

Hawk 5000 February 24, 2016

HEY Eagle495 or should I say Heidi or should I say MikeS. quit using my name find your own name , one thing I agree about is yea you are a big fat flop.

GK February 24, 2016

Go back to last week and the week before, you will find that he recommended gold probably bottomed when it held 1190. Oil would bottom out at 25 he repeated several times last year, which it did this year, and he confirmed weeks ago.

Larry King February 24, 2016

No he didn't. Even in his newsflash yesterday he confirmed he missed this last run in gold to a member in the Q&A. And he called a bottom in oil, then it went lower 2-4 weeks later. But Larry knows most don't check this stuff that's why he gets away with being "right as rain? LOL!

Raul February 24, 2016

Larry has been calling for another leg down in the market, yet he says that oil has bottomed. More times than not in the last few weeks, oil and the market are tied at the hip. If oil falls, so does the market. If oil is up, usually the market is up. How is the market going to go down as he predicts with his call for oil to go up?

GK February 24, 2016

Ten thousand reasons. Market is more complex than that.. :-)

JJJ February 24, 2016

I have heard many of these arguments before. While these phenomenon will effect stock prices for a while, good old fashioned fundamentals are like gravity, eventually they will rule the day. The only question is how long will this illusion last, Will it last the many years necessary for fundamentals to catch up and match the stock prices or will it fall short and we have a crash. I have heard all of these comments before about how the rules of economics have changed. Looking back at previous crashes, my money is on a massive crash or one or more serious corrections.

Norita February 24, 2016

Larry: JNUG and NUGT are now too expensive to buy. I am looking forward to the list of miners you said you would give before the end of February. And when you give us this list,will it be a recommendation to buy?

mike February 24, 2016

This morning, Larry observes: “”Consider the U.S. property markets, which have already recovered from their lows quite nicely — even as mortgage rates have stabilized and started moving higher.”” This SAME morning, ZeroHedge.com shares with us: “”Against expectations of a 4.4% drop, New home sales collapsed by 9.2% in January. This is the biggest January drop since 2009 dragging the SAAR to 494k (back at December 2014 levels). … Worse still, home prices tumbled – from $295,800 to $278,000 (lowest since April 2014), and down 4.5% year-over-year as it appears the inventory fears have disappeared with months-supply surging from 5.1 to 5.8. If this converges, we have a major problem.””” Once again, Larry somehow claims to be able to concoct a Square that is round, or a Circle that has four corners.

Jim February 25, 2016

Kinda like having your cake, and eating it too.

Norita February 24, 2016

Dear Larry: I cannot figure out why more specific information about lows and highs in the commodities market are available in "money and markets" articles rather than any "flash" news promises in RWR...........................

Ted F February 24, 2016

Could we reach a point with so much money flowing from country to country if the form of investments that countries could start wars over their perceived mistreatment of the nationals by a foreign government?

JR February 24, 2016

Personally, I'll be investing heavily in brass & lead...

Hawk 5000 February 24, 2016

but didn't Obama shut down the last lead mine in the united states by using the EPA as his tool

Hawk 5000 February 24, 2016

Just kidding I know what you meant

UDO February 26, 2016

JR would you consider peanuts ?

bob February 24, 2016

isnt this the month your gold cycle goes way up ?

duke February 25, 2016

where does richard mogey stand in all of this?

Hank Kouw February 25, 2016

When is the dip to 14000 coming for Dow Jones? Or are we skipping this forecast and go now straight to the next forecast of 31000? Keeping faith in your forecast Larry is very frustrating.

UDO February 26, 2016

Hank Kouw Larry needs people like you . " Keeping faith in your forecast which hardly ever comes true . " Good boy .

UDO March 1, 2016

Hank the 31,000 for the DOW has been cancelled but it was an eye catcher , wasn't it ?

UDO February 26, 2016

Can anybody confirm that Larry said late Nov. and going forward into 2016 to buy the miners ? Armstrong only had gold in mind for his forecast to hit a low late Nov. and THAT was correct but it was not A BUY . Did Larry on it's own do better while Armstrong missed a 60 % rise or better ?

john February 26, 2016

"Larry's cusp" could be anytime between now and 2050 and I would say in that context he is always right ! Lary and gold are nowhere to be seen! The latest is the Dow is now Cusping ?? What odds are you giving Larry ?/ John

Kurban February 27, 2016

Larry is there to make you rich? or to make his living? Guess what?

Bob February 27, 2016

What is you prediction for oil and copper over the next 6 / 12 months as both have bottomed and are ready for their next move up. Anyone can predict that copper will go to $4.00 + or oil will exceed $60.00 ... The real question is when, and how fast Also it seems that your endorsement of the new currency experts @ Weiss are drafting behind your reputation to generate their own subscribers yet they appear to be on the opposite side of you on many predictions as does Mike ... I get that Weiss will be able to publish, 2 years down the road, when everything either goes up or down, that one of his team predicted it, and can publish the prediction ... Question ... Will he also publish the ones that predicted the exact opposite ... Am a believer in your position, but am starting to think the "Weiss money making machine" has their interest at the forefront ... IMO

pino February 28, 2016

Hi Larry, I have been a real wealth member for many years now..... But I will not bother sending questions anymore... you never answer them..... So please stop asking to sent questions or comments when you never answer mine and the ones you do answer .,..... you keep repeating the same answers to similar questions... apart from that you're doing ok... Cheers, Pino.