Tuesday evening at 8:30pm CST… Just a quick note as I am watching the election results come in on the network news tonight. I am enjoying getting the full spectrum of political viewpoints changing channels from CNN to FoxNews and then to MSNBC. Quite a big difference… All journalism today is opinion. Very little objectivity to be found.
Regarding the elections… I predicted on last weekend’s show that the House would go firmly to the Republicans and that the Senate would be balanced out. I did not, and still do not, expect a Republican victory in the Senate. From a political standpoint, these are very important elections in that they can potentially stem the Federal overreach into the affairs of the state. State’s rights are under severe attack today as the Federal government seems to know no limits to its boundaries of power. It is the job of the House and the Senate to represent the States in such a way as to prevent the overgrowth of Federal power.
Economic impact… It is not a stretch to say that this is the most important week of the entire year for the financial markets. Tuesday’s elections and the Wednesday Fed QE2 announcement will lead investors to make a decision. Many are seeking to profit from this week’s volatility.
My economic forecast… I expect a market rally to begin on Wednesday and to continue throughout the week on a Republican victory in the House and a major Fed announcement to pump new money into the economy. I expect gold and silver to bounce as the dollar comes under massive pressure. I also expect the Dow, the S&P 500, and the Nasdaq to rally big this week.
Gold and silver are going to run. Some projections that I am hearing show that silver could hit $30+ by year’s end. Additionally, gold could also reach $1,500 by year’s end.
Late this afternoon, I added to our positions at the FTM Investment portfolio in anticipation of the coming market rally. Our partners and our FTM Quarterly newsletter subscribers will receive the specifics in their email inboxes later tonight. To get real-time access to the FTM Investment portfolio including buy and sell alerts plus our quarterly newsletter for only $99/year, click here.