by James Rickards
The stock market was up big today on news that the COVID-19 outbreak may be slowing in the U.S. That would be good news. But it’s still far too early to draw any conclusions and make no mistake — this crisis has a long way to go.
All we can do is wait and hope for the best.
Meanwhile, gold topped $1,700 per ounce today. That’s nice for gold, but it’s better understood as an early warning of declining confidence in the dollar.
I’ll have much more to write about that in the days ahead.
This is not my first financial crisis, although it’s shaping up to be the worst. I’m a veteran of the October 1987 crash, when markets crashed 22% in one day, the 1994 Tequila Crisis, the 1998 Russia/LTCM crisis (I negotiated the Fed/Wall Street bailout), the 2000 dot-com crash and, of course, the 2008 mortgage-Lehman-AIG meltdown.