Recently we interviewed Charles Biderman of TrimTabs Investment Research. By looking at payroll taxes and other IRS information, Mr. Biderman’s research can tell us exactly what is going on in the real economy.
During our interview, Mr. Biderman makes several very important points.
Since 2007, all the normal sources of buyers for the stock market have become net sellers of U.S. equities including individuals, pension funds, and hedge funds which has left only the U.S. government left to purchase U.S. stocks.
“The real problems are the government structures in the United States, Europe, and Japan. The governments of the central banks have printed probably close to $10 trillion in new money since 2009.”
Central Banks (the currency printers) are the largest buyers of gold, and have been since 2009.
Charles discusses why he believes that the Dow could fall to 6,000. His analysis is predicting that there will be a season of deflationary and inflationary forces where we could see the Dow crash while gold soars!
Once the junior mining companies go, it will be epic!