DOW SETS RECORD DROP, GOLD SOARS
The May 6, 2010 historic financial market panic showed the true vulnerability of the global financial world.
With investors nervous over events in the Euro Zone, single events sent markets plunging. At one point in the trading day the DOW dropped more than 900 points. Reports say that a bad tick on P & G stock showed the stock down 25% in a matter of seconds. To the informed trader that could never happen, but many people panicked. When it was found to be a bad print, the market went from down 900 to down 350.
Financial analyst Craig R. Smith, CEO of Swiss American Trading, is available to be your Talk Show guest to discuss this wild bear ride.
Said Smith, “The bigger issue is what occurs when the confidence, so essential to paper markets, disappears. Confidence in the system is a critical component to stable markets. When confidence leaves, markets collapse. Not a very good environment when many people's life savings have been sucked back into a very volatile stock market.”
However, Craig says, that there was a “golden” lining in the midst of the collapse of confidence. Gold rallied $32, the Yen exploded and the U.S. dollar strengthened. All represented “safe havens” during the panic that spread through the market.
Smith describes what he calls the Dow dichotomy, saying, “In past massive drops in the DOW, gold dropped in sympathy. This time it was quite different as many countries and investors now see gold as the ultimate currency. People instinctively know gold is real.”
Craig believes your audience needs to know that gold is an asset that is not someone else's liability. Stock value and liquidity depend on the issuer. Gold, on the other hand, does not have a recurring liability. It doesn't need a Credit Default Swap to keep it safe. Craig concluded, “The average investor has sat out for many of the recent rallies in the stock market--myself included. Tomorrow when the headlines worldwide have words like ‘contagion’ or ‘market panic.’ I suspect many will remain in the safety of the sidelines. Placing assets in markets that can drop 900 points in a matter of seconds in not an investment, it is a ‘bet.’ And like betting unless one can afford to lose, he or she should stay out.”
Perhaps Will Rogers said it best: “I'm not so concerned about the return on my money as I am about the return of my money.” And gold is still as solid as—gold.
As a guest on your show, Craig Smith would like to make available to your audience a FREE Swiss America Special Report, The Incredible Shrinking Dollar: How to Fight Back, just by calling 800-289-2646.
ABOUT YOUR EXPERT GUEST CRAIG R. SMITH
Craig R. Smith is an author, commentator and popular media guest because he instantly engages audiences with his common-sense analyses of local, national and global trends.
Serving as CEO of Swiss America for over 25 years, Craig understands that Americans want solid answers to the tough questions and that real leadership begins with servanthood.
Craig is the author Black Gold Stranglehold: The Myth of Scarcity and the Politics of Oil, which he co-authored with author Dr. Jerome R. Corsi.
Sample TV interviews conducted by Craig R. Smith may be viewed at:
http://craigrsmith.com/news.php