Working-Class Revolution and Market Misconceptions

I told you that Donald Trump would be elected as president, contrary to what the media, pollsters and pundits – just about everyone – was saying.

Not that I voted for him. I didn’t. I didn’t vote for Hillary, either. That way, I could remain impartial and guide you with my A.I. models on who would win … and months ago they clearly pointed to a Trump victory.

Why?

Because there is a revolution going on in the U.S.: A working-class revolution by a growing number of Americans who feel they’ve been left behind.

Moreover, the system is broken. Washington is nearly $200 trillion in debt when you count all official and unofficial obligations.

Europe is in a similar boat of debt, broken promises and a working-class rebellion.

Now what?

Recognize the discontent in the world … think out of the box … study history … and take advantage of what the market is really telling you.

The unexpected Trump victory turbo-charged volatility. And that’s turned a ton of traditional market relationships upside down and inside out.

And that means never-seen-before opportunities for smart investors who know where to look and know what to do. More than ever, it’s crucial to have unbiased, pure, market-based modeling – like my Artificial Intelligence models and extensive cycle work.

For example, my model said to buy the U.S. dollar on November 2, ahead of the election. While the talking heads dismissed the dollar’s underlying strength, it’s now approaching the December 2015 high and targeting levels not seen since April 2003 …

The rise in the dollar goes hand in glove with another relationship I’ve warned you of: The bond bubble and subsequent surge in U.S. equity markets.

It’s unfolding as I expected: Investor flows away from bonds and into the stock market.

In fact, my models indicate that the Dow could be kicking off the next leg higher ultimately to 31,000.

Don’t be bamboozled by the media and market pundits. Study history and stay tuned to my columns and my Real Wealth Report for real-time updates on what to expect.

Stay safe and best wishes,

Larry

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 53

Steven November 11, 2016

What about Gold?

Ted November 11, 2016

There was blood on the streets today n buying should have started . Might retest low or make new one for more buying opportunity but then gdx back to $25.55

JERRY November 11, 2016

IT WILL GO UP AND DOWN

Davis Anderson November 11, 2016

If Larry called Trimp the victor then why vote for a loser ? Just curious ! I am a fan of Lery but good instincts don't vote for non-winners with cash !

Chris November 12, 2016

My thoughts exactly lol

Barry November 11, 2016

Great calls, but huge miss call on gold

Como651 November 12, 2016

He did not miss on gold. Larry called 3 potential bottoms. 1250 per oz, low 1200s or upper 1100s. He said to buy at first potential bottom of 1250 but warned it could go lower. If he did not give the buy signal at 1250 and gold exploded higher and quickly broke out everyone would have missed the breakout. Larry does not claim to be spot on. He simply predicts the possible scenarios with greatest probability based on statistical modeling. It's very possible gold could break one more support level and fall sub 1200s but he warned that could happen. Ultimately his models predict gold over 2000 per once and that is the real call Larry will be judged on. Larry provided probabilities and possible outcomes. It's up to followers to decide what to do for themselves. If gold goes to low 1100s then I think we can point the finger at Larry and say he was wrong but so far he's been very accurate on gold.

Gary November 11, 2016

Larry, I am a long time follower of your investment philosophy so far with mixed results. I thought your models showed the DOW would pull back before it took off to 31,000. Is this still accurate?

Como651 November 12, 2016

It may have already late election night. The DOW futures dropped nearly 900 points but most people were asleep when it happened and the market fully recovered by the end of the next trading day. That may have been the correction or maybe there is another that will take the DOW to 17000 which is what Larry said would probably be the extent of the correction. Larry has provided the information There are two choices. Either wager the correction is already in if you want to call what happened on election night a correction, and invest now or wait for a potential fall back to 17000. If you wait and the DOW never falls back then you miss the ride up. If buy in now and it drops to 17000 later before going to 300000 then you can't blame Larry. Larry gave two probabilities but people need to make their own call and can't blame Larry if they get it wrong. It's like being presented with ten doors and only only one has a million dollars behind it for you if you pick the right one and Larry narrows it down to two for you. Would you blame him for picking the wrong one out if the two because he could not tell you exactly which to pick? He's only human and as good as his statistical model. Human instinct had to play a part too. It's frustrating sometimes when your timing is off. I backed up the gold truck already and now I'm way down but I don't blame Larry. I'll blame Larry in 3 years if gold is not over $2000 an once by then.

Eli November 12, 2016

I have the same question. He was predicting a drop in the market, and then he would give the signal to buy the Dow. But read his language carefully: "my models indicate that the Dow COULD be kicking off the next leg higher ultimately to 31,000". So he's not recommending anything or committing himself.

ferdinando cortese November 11, 2016

Hi Larry: Trump lost the popular vote, he was elected because of this strange system we have, which is called the Electoral College and which should be abolished. Nevertheless by itself the strong showing of an orange hair buffoon is by itself remarkable. Question: Why with the spectrum of protectionism and rising interest rates would the market go up? PS. I very much enjoy your comments

Mitzi November 11, 2016

If we abolish the Electoral College and go by the popular vote, then the candidates would only concentrate on the more populated East and West Coasts. Flyover country would be forgotten, as the smaller populations wouldn't be worth their time or money.

espy November 11, 2016

If you want California to routinely choose the Prez (Hillary won by 2.5M votes in that state alone), you might like to put your efforts into the secession movement there. In the meantime, for a dose of reality, pull up an electoral map which shows how the entire country voted by county. The Electoral College exists for precisely the same reason you find zero mentions of "democracy" in our founding documents. Two wolves and one sheep deciding what to have for lunch is no way to run a nation.

Como651 November 12, 2016

The market is going up because of Trump's or Paul Ryan's tax proposal will likely be passed now that republicans have both houses resulting in massive tax cuts for corporations. That will add directly to the bottom line of these companies and profit margins will be way up. The market is pricing on this expectation.

Alan November 12, 2016

Isn't that how Obama got in ?? Same system isn't it ?

Al November 12, 2016

So the big cites can control the rest of the country . you must be a democrat liberal

John T November 13, 2016

Without the electoral college, all the winner whether they are republican or democrat would have to do is win or lose a majority of the most populated states. Cal, NY, TX. etc, etc. Why would you care about North Dakota or Maine. Founding fathers were brilliant men who tried something that had never been done before and were willing to die for this new idea.

Ken November 14, 2016

Obama did not lose the popular vote.

bsquare111 November 14, 2016

The Electoral College is a superior voting system. I prevents a few large population centers from dominating the results of every election. Our forefathers were pretty smart. Just because your side lost doesn't make the system bad. Our country is NOT a democracy - it's a republic. Democracies have historically imploded after a certain amount of time.

F151 November 14, 2016

Our elections were set up to be governed by the electoral college. The Founding Fathers feared that the large cities of their day (Boston, NYC and Philly) would control everything and small or rural states would have no input. IF we were on a popular vote system...all of the candidates would only campaign in the large cities and the results would probably be similar....with the additional visits there from candidates.

craig howe November 11, 2016

Larry ,your charts on the Gold price , told us that the price of gold would rise around the 10th November , but your chart on gold is wrong ...as you know the price as i write is down around $100 dollars ( $1,225 ) since the 10th November ..Whats going on Larry ??

Ernie Baldwin November 11, 2016

Today's chart does not match your posted chart on Oct. 19. There is no mention of the downfall of the latest two decreases in the gold price in your Oct. chart. Where are we going from here. Does today's chart have any validity?..

Como651 November 12, 2016

Charts are statistical models and become less accurate the further out like weather. Larry warned that the bottom may be at one of the next two support levels, low 1200s an ounce which is being tested now or upper 1100s. The chart Larry gave was most probable outcome but like the whether it never follows exactly. A better model to follow in investing is Murphy's Law. What can go wrong will go wrong and Larry's model is not immune to Murphy's Law. If you would have waited for gold to drop to under 1200 per ounce you can bet Murphy's Law would insure gold never got under 1200 per ounce, and not only that, it would break out over 1500 an once all while you sat on the sidelines waiting for the right entry point.

Dunkelmann November 12, 2016

Please can we see the latest updated gold chart with the recent drop marked in.

Karl Peterson November 11, 2016

Yes, what about gold & other precious metals?

SimonP November 11, 2016

I wouldn't give trumppence for the incoming administration

F151 November 11, 2016

All citizens should vote. No excuses.

Doreen November 12, 2016

I live in Scotland, the choice for the Scottish parliament is grim. Why should I vote for unsuitable candidates ? Around the western world people are rejecting the political class.

F151 November 14, 2016

ALL of the choices are grim? I find that hard to believe. Even here, you had a choice of up to 5 candidates for president.

Larry November 11, 2016

I have been investing in Gold and Silver after gold crushed through the 1275 resistance point. Now look at what is happening! Big disappointment and a costly one too. I hope this is the flush, that gold will go much higher as Edelson has said it will.

Raul November 11, 2016

Your dollar chart shows the dollar much higher in late January. Won't that bring the price of gold down to new lows then?

Steve November 11, 2016

Still waiting for climb in gold. Also some are still predicting a crash in stocks?

Frank November 11, 2016

All of you guys crack me up. You act like Larry has some magical orb where he can see into the future. LOL. He has a system and sometimes it yields accurate predictions about where various markets will go, but he doesn't know for sure. You all have to make your own choices. Take Larry's analysis as just one set of inputs into YOUR OWN DECISIONS.

Joao November 11, 2016

I'm sorry but you got it all wrong, USD ALWAYS goes opposite gold, just follow the moves on the dollar to bet on gold...

Mark W. November 11, 2016

I think we are all concerned about gold. I know that I am. An update would be greatly appreciated. Thanks.

Gene November 11, 2016

Is there one more pullback before gold goes higher or is gold going to continue to trend downward?

Bob November 11, 2016

With China Russia Pakistan North Korea and other country's governments and investors buying large amounts of gold and silver with some coming from the u s ,are they really that much smarter then the u s government and investors

Terrell November 11, 2016

I don't see your non voting as impartiality.

gordon November 12, 2016

There are opposite opinions if you read Harry Dent look out for gold to hit $750. I like gold but am going to trade and close out on profits. Gold is a small market and someone dumped 8 tonnes onto the market on a Friday. More than coincidence I fear. Between being a small market and bullion banks and the FED and governments that hate gold I think trading is the best value. All this 5,000 ounce gold is pie in the sky stuff. The people that make the rules are in charge they can drown you in paper money and smother out any gold fire that breaks out.

gordon November 12, 2016

PS Look what Modi is doing in India withdrawing large notes to stop "corruption" Even before doing this gold sales were down in India and Modi is a gold fighter. If gold sales to India and China stall out at $1250 can you imagine what they would do at $5000.

miguel November 12, 2016

Please tell us about gold I invested all my capital in gold when broke 1275.WHAT DO YOU THINK IS GOLD GOING TO LOOOK FOR ANOTHER LOW.YESTERDSY 11 NOVEMBER MADE 1219.PLEASE TELL US IF I SHOULD CLOSE TO WAIT ANOTHER LOW.

Marty November 12, 2016

Thank God that "orange haired buffoon" was elected. Once he repeals and replaced the Trojan horse know as Obama Care, repatriate trillions of dollars left off shore, reduces regulations strangling our businesses and lowers the tax burden on both our businesses and consumers, you will see the DOW skyrocket to 31,000 and we can benefit from the wealth that is created...

Peter Vella November 12, 2016

First things first, Larry is not a prophet and he is definitely not God almighty! So regardless of what he publishes, he will always like the rest of us make his fair share of mistakes! Having said that and living in Australia, it was apparent to me since last July that Donald Trump would win the election as I fervently recalled hearing from a devout American Christian woman that there were many Evangelicals praying for a Donald Trump victory. As it turned out I subsequently asked the Pastor of my church if it was alright for me to place a bet on a Trump victory. However the Pastor informed me that Christians should not gamble! So I heeded his advice and missed out on getting odds of 5 to 1. What can I say! God bless America!

roger stamper November 12, 2016

tks for post

Reynaldo November 12, 2016

Hello Larry. I like to thank you. I use the charts you post as a guide and still use my contrarian strategy to know key points on where it will reverse. Thank you so much.

ROBERT November 12, 2016

It appears that investors are going crazy trying to figure out what Trump will do. He so seldom does what he says he will do that a wild guess is as good as any prediction. About the only thing that you can depend on is that he loves attention. So pay him attention.

Andrew November 13, 2016

Larry , This is shocking , I was so impressed with your so Gold AI Chart and your video interview sharing with us your passion that you were never wrong and how accurate your prediction on Gold but see what happen - very wrong . Dollars strengthen gold crash !! ( I remembered you mentioned this time is different , GOLD and Dollar can go in the same direction ) Please don't change topic , many people listen and believe in you . Don't lose credibility by avoiding . you should explain .... Though trust a little shaken but please explain Thanks

Gene November 13, 2016

Do you think gold will hold the 1180-1200 support level. Gold's downtrend momentum seems very strong right now, billionaires are dumping gold and Trump's plans seem to be negative for gold. Am I missing something?

Al November 14, 2016

I would also like an update on the gold chart.

steve November 14, 2016

sure would like an update on gold.....

Elrod November 14, 2016

Larry, You keep writing that you said that Donald Trump would win. I dispute that you made that prediction. Prove me wrong and provide a link to the article where you said that he would win. I want to read the original article.

Sinjil November 15, 2016

I have never heard or read Larry saying that Trump would win. I can see where Larry political leanings are. Please Larry, we need to make distinctions between ideology and economy. If you implement pure capitalism, it is doomed to fail. You can't let people "elites" in control to do whatever they wish. You have to regulate. We are human, this means greed.

Leapy November 14, 2016

Give a link to the article where you predicted Trump would win.