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Jim Rickards: Expect Volatile Markets in 2014

February 5, 2014

Our friend Valentin Schmid over at the Epoch times recent sat down with Jim Rickards to discuss the economy and what to expect for the markets in 2014. One of the more interesting comments Rickards makes is regarding the tappering that has happened the prior two months.

Rickards states “In fact I think a recession in the United States in 2014 is even likely. My expectation is there will be one more round of taper in the March meeting of the FOMC [Federal Open Market Committee] where they will probably taper another $10 billion.

But by June it will become very apparent that the economy is stalling out, the stock market is going down. They risk a stock market collapse. I think they will stop by pausing the taper.

They won’t increase asset purchases but they’ll stop the decrease; what I call the Yellen Pause. But the market expects more tapering, so if they just pause that will be a form of monetary easing relative to expectations. Maybe later in the year they’ll increase asset purchases.

Click here to read the full interview.

Discussion
20 Comments
      Feb 05, 2014 05:17 PM

      Thanks MNH. That was a great read. And that is a huge position especially with consideration to the fact that above ground stocks of silver are close to equal or below those of gold. Silver is the new contender and JPM knows it. The math works out so beautifully for large holders it could make you cry. We already knew silver would be in absolute shortage based on mine results within the next 20 years so this could really be a very long term play but it is one that should pay off handsomely. Today silver stands at 65 to 1 ratios but a decade or two out that should reverse dramatically. One to one would freak EVERYONE right out.

    Feb 05, 2014 05:41 AM

    Sounds like JP Morgan has cornered the silver market and will keep the price down.

      IT IS NEVER WHAT YOU THINK THAT GETS YOU………….IT IS WHAT YOU CAN NOT SEE.

        Feb 05, 2014 05:17 PM

        Yeah, gold supression was really about cornering silver……hmmmmm.

    Feb 05, 2014 05:42 AM

    Today,the price of gold is up and down like a toilet seat, that’s volatility. DT

      Feb 05, 2014 05:47 AM

      CFO is finally starting to rise from the ashes. DT

      Feb 05, 2014 05:43 PM

      It’s a battle out there today DT! It looks like we are going to end the day up only around $3 – pretty much flat. When people look back on the chart they will see very little.

    JC
    Feb 05, 2014 05:52 AM

    Could be to manipulate the price of silver and keep it down, but keep in mind the purpose of JPM is to make money….profit….so, their purpose could also be to accumulate silver while it is cheap knowing that as the economy and stock market tank, they will reap fantastic profits from their silver holdings….or maybe they will pull a Hunt brothers stunt and CAUSE the price of silver to go far higher than it normally would before they sell into the strength. I see JPM buying silver as a very bullish sign for the future, not the other way around.

      Feb 05, 2014 05:47 PM

      Interesting comment JC. I can not say one way or another what JPM intentions are other than as you said, make money. When you are as big of a player in any market as JPM is in silver they need the interest of many investors to be bale to sell.

      I personally have been very disappointment by silver in 2014 but today was interesting as it was not sold down nearly as much as gold after the spike.

    Feb 05, 2014 05:55 AM

    I think the silver market is small potatoes to JP Morgan.

    They will make the big money in other forms of investing and will keep a lid on the silver price.

      bj
      Feb 05, 2014 05:28 AM

      Greed has no bounds…. Not one crumb will be left on the table.

      Feb 05, 2014 05:49 PM

      I agree with you James. Except when the retail and other investors start to flow into the market they will have $ signs in their eyes and that is when they could let it run.

    j THE l…………..at the current ratios ,,,you are correct…..but, try 16 to 1 ratio , and see what the number is……………..

    LGC
    Feb 05, 2014 05:09 AM

    James, I concure with you evaluation. JP Morgan is working hand in glove with all central banks and our Treasury and they seek to keep the game going as long as they can and want all aspects of people control under their control. Controling the price of silver is just one mor aspect of keeping the natives calm and under their control.

      Feb 05, 2014 05:50 PM

      Good comment JGC. They do not want any shock waves in these current markets.

    Feb 05, 2014 05:09 AM

    LGC, you are absolutely correct

    Feb 05, 2014 05:22 PM

    In an alternate universe, the US has conceded the mantle of global economic titan and has ordered its banks to seize second prize by buying up as much silver as they can lay their mitts on. During the same meeting the bank is put on notice to sell its gold vault to the Chinese and begin shipping it gold overseas to be recst into one kilo bars. It suddenly all makes sense…….just kidding guys.

    Feb 05, 2014 05:25 PM

    Birdman, you make a lot of sense when you are just kidding. I always like that Chinese joke that say’s do two Wongs make a Wright. DT