Economist Nouriel Roubini (AKA Dr. Doom) is warning that the U.S. is likely to endure a deep, long recession that could plunge the S&P 500 another 30%. “We might be closer to a period like we saw between 1973 and 1982, where stocks dropped and stayed very, very low for a long time,” he said. “We could have a long-term crash.” In other news, the World Cold Council reports that central banks bought 400 metric tons of gold in the September quarter. That’s typically what they would buy in a whole year.

Business Insider/Theron Mohamed
‘Dr. Doom’ Nouriel Roubini warns the S&P 500 could plunge another 30% – and the US economy faces a long and painful recession

US stocks could plunge another 30% as the economy endures a painful and protracted recession, Nouriel Roubini has warned.

The economist, dubbed “Dr. Doom” for his grim diagnoses and predictions, noted in a recent Fortune interview that the S&P 500 typically dives at least 30% during a recession. If that pattern holds, the benchmark stock index will extend its 21% decline this year, and sink below 3,400 points.

Moreover, Roubini cautioned that an especially harsh economic downturn could send the S&P 500 even lower, to around 2,700 points.

You can read the full story, here.

Bloomberg/David Fickling
Even Central Banks Are Buying Gold for the Zombie Apocalypse

The instruction manual for surviving a zombie apocalypse is pretty straightforward. Once you’ve kitted out your bunker with canned goods and firearms, get a supply of bullion. You’ll need it to buy bullets and bribe your way out of a death fight in Thunderdome.

That’s a line of thinking you might associate with cranky gold bugs, but it’s not a million miles away from the rationale behind fund flows in the precious metals market right now — and nations are in the driving seat. Central banks bought 400 metric tons of gold in the September quarter, the World Gold Council reported this week. That’s a record inflow on a par with what they’d purchase over a whole year in normal times.

In the notoriously opaque world of government gold trading, it’s not always immediately clear who the biggest buyers are. Monetary authorities are such big players that they can distort the entire market by showing their hands, one reason that prices plummeted in the 1990s and 2000s when some of the European central banks sold in unison.

You can keep reading, here.

Quoth the Raven and ZeroHedge
Massive Mystery Gold Buyers Appear, Metals Rocket

I have been writing over the last few weeks about how gold appears to be one of the “least loved” assets of any sector. In my most recent portfolio updates, I have written about how miners and metals appear to me today to be like energy was in April 2020: completely thrown out to trash and forgotten.

Being unloved, of course, presents opportunity, in my opinion. But the best part is that the backdrop with which the metals are selling off against makes it even more appealing. For months, I have been writing about how we are witnessing, in real-time, a bifurcation of the global economy the likes of which we have never seen before. The BRIC nations – now inclusive of Saudi Arabia – are purposefully separating from the West and looking to forge forward with their own economy.

And did I mention they have all of the oil, productive capacity and gold?

Continue reading, here.

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