After the Yield Curve inversion; bear market rally to end, precious metals to bottom

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After the Yield Curve inversion; bear market rally to end, precious metals to bottom

Before proceeding, I'd like to remind you that this article is not written by a perma-bear. It is important to have credibility and indeed, NFTRH planned for a potential humdinger of a bear market rally back in Q4, 2022 based on the inputs of then extremely over-bearish sentiment, the bullish mid-term election cycle , a coming fade in inflation signals being its primary elements. Here is one post discussing the rally in November, 2022.

Gold is sought after when monetary regulators are indicated to be either losing control ** or going overtly dovish while stocks would tend to either rotate toward commodity/resource producers and certain cyclical/value areas under inflation or go flat out bearish under deflation or a more virulent stagflationary inflation.

Goldilocks, and the Tech-led stock market rally have enjoyed the inversion, as would be expected. When the new steepener follows, in concert with an oncoming recession, there will not be much enjoyment. What there will be is the end of this massively risk 'ON' phase, the job of which always was to turn Q4, 2022's unsustainable over-bearish sentiment profile on its ear, to its opposite condition.

It's all a sign of a coming top in speculation, and then there will be gold, as it always is. The end of the yield curve inversion and coming of the next steepener will be an important signal even as we patiently manage the gold, silver and miners correction on a weekly basis with clear downside objectives laid out back in April.

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