In this engaging discussion, Chris Vermeulen, Founder & Chief Investment Officer of The Technical Traders, shares his insights on the financial markets, particularly gold and commodities. He predicts a potential rally in gold, with projections reaching $5,100, while emphasizing the importance of following price trends over fundamentals. Vermeulen draws parallels to the 2007-2008 market cycle, noting gold's role as a warning sign for systemic stress. He also discusses the volatile landscape of oil, the strengthening US dollar, and his innovative asset revesting strategy.
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insights INSIGHT
Metals As An Early Warning Signal
Gold and silver's recent parabolic rally is a warning sign that investors sense financial instability ahead.
Chris Vermeulen expects a controlled pullback followed by another major upward push in metals.
insights INSIGHT
Gold Rally Precedes Equity Declines
Gold often rallies while equities still hit all-time highs, signalling mistrust in the financial system.
Vermeulen compares today's setup to 2007 where money rotated from stocks into precious metals as the market topped.
insights INSIGHT
Potential 30% Gold Leg Ahead
Vermeulen sees potential for gold to run ~30% to about $5,100 in a multi-month move, mirroring 2007–08 behaviour.
He stresses timing via price action not fundamentals, using tools like Fibonacci extensions.
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Stijn Schmitz welcomes Chris Vermeulen to the show. Chris Vermeulen is Founder & Chief Investment Officer, The Technical Traders. In this in-depth discussion, Vermeulen provides insights into the current state of financial markets, with a particular focus on precious metals, commodities, and potential economic shifts. Vermeulen argues that gold is currently signaling potential economic instability, suggesting we are approaching a significant financial reset. He believes the precious metals market is in a temporary pullback phase, with potential for another substantial rally. Drawing parallels to the 2007-2008 market cycle, he anticipates gold could potentially reach $5,100, representing approximately a 30% move from current levels. His investment strategy, which he calls "asset revesting," focuses on moving capital into assets showing the strongest upward trends with the least risk. Vermeulen emphasizes following price action rather than getting caught up in fundamental narratives, noting that markets have their own psychology and momentum. Regarding other commodities, Vermeulen offers nuanced perspectives. He sees copper in an uptrend but isn't particularly bullish, while he's bearish on oil, predicting it could drop to around $45-$52 per barrel. Interestingly, he sees potential in the US dollar, believing it's positioned for a significant rally that could coincide with a stock market correction. His analysis suggests we're in a late-stage economic cycle characterized by innovation (currently represented by AI stocks) and potential market fragility. He warns investors to be cautious, highlighting that a handful of tech stocks are artificially propping up market indices while many underlying stocks are struggling. Vermeulen recommends investors follow price trends, manage risk carefully, and be prepared to move capital quickly between asset classes. He suggests visiting technicaltraders.com for more detailed market insights and trading signals, where he provides daily market analysis and trade recommendations based on his asset revesting strategy.