Mr. Dines: Here Comes One of the "Biggest Bull Markets In History"

Written by James Dines
Posted May 2, 2020

Publisher's Note: Today we're bringing you a pair of excerpts from Mr. James Dines' Interim Wealth Bulletin, a weekly, in-depth companion service for The Dines Letter.

Mr. Dines has long warned about the dangers of infectious diseases, the building currency crisis, and how a massive gold spike and bull market were building. Now we're seeing all three pan out at the same time. Read on for Mr. Dines' sage analysis.

Call it like you see it,

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Nick Hodge

From our Interim Wealth Bulletin of 21 Jan 20:

“As this is written a new pneumonia-like virus has erupted in Wuhan, the largest city in central china, which seems to have the ignominious distinction of being passable from human-to-human rather than merely via intervening animals. It is spreading very quickly, and has even infected health professionals. Wearing scary hazmat (hazardous materials) suits, last seen during the terrifying Ebola epidemic. SFO (San Francisco) and JFK (New York) are the only American airports with direct flights from Wuhan; LAX (Los Angeles) has connecting flights there. We are glad preventative measures have been enacted, governments having matured enough to react to the menace of new bugs, to which TDL has been calling attention for a long time. So far the main symptoms to watch out for are coughing and fevered perspiration. Since nobody knows when an infected person might next appear in any of the world’s airports, caution should be exercised and travelers might want to postpone flights.”

From our 21 Apr 20 Interim Wealth Bulletin:

America’s current struggle with the Wuhan virus is now widely called a “war,” often compared with World War II, even led by a current “wartime president.” But in today’s war, there is no violence, just casualties! That’s not how real wars work, Walter Mitty dreams of glory aside. The early days of World War II saw horrific deaths, both in Asia and Europe, as reeling armies were smashed into backpedaling wildly, sacrificing unlimited military lives in order to gain time in which to awaken America’s industrial might. Such delays resulted in America’s tragic fatalities during the Battle of Corregidor and the infamous Bataan Death March — taught in too few schools these days. World War II was like a knife fight in a dark alley, fought by what many Americans now call “the greatest generation.” It was a brutal contest.

America’s economy is now suffering a once-in-a-century Depression, akin to a medically induced coma and heart attack combined, replete with lines outside soup kitchens. This is “The Second Great Depression” that TDL had been warning about. It is actually driven by an underrecognized currency crisis, aggravated by the Wuhan virus. We don’t expect many, even now, to agree with that. But that’s our difficult-to-make call.

Crude oil has joined interest rates in plunging as low as a breathtaking $40/bbl below zero, unheard of in recorded human history, which suggests that the world’s economies are drifting toward a Niagara Falls.

The current fantasy is for a “V-shaped” economic recovery, but by then many corporations will have gone with the wind. Meanwhile, small businesses are drowning, silently slipping under the waves. Renowned Neiman Marcus has filed for bankruptcy. After defeating the virus — which will happen — the survivors will return to a tragically different scenario: spectacularly so, hopefully not like Syria’s bombed-out Idlib.

Someone must make the cruel decision as to when to at least partially reopen the economy, or business will be like the proverbial, “The surgery was successful, but the patient died.” America must now begin opening some sectors. Or the economy will begin to implode. That’s the choice as we see it. To TDL gold’s strength has been a blinking red light, combined with the crashes in oil and interest rates comparable with closing down the economy’s life support systems.

We at least tried to thwart that result, but no newsletter has done it. We were forced instead to retreat to havens such as gold and silver. TDL is frustrated yet helpless to do more than warn that gold and silver will at least provide some safe harbor.

So far gold bullion has led the havens higher. The stampede has already begun; next rising should be their mining stocks. We predict that when the price of gold bullion rises above its all-time high at $1,895/oz — only $195/oz higher — that that Super Major Upside Breakout will trigger an explosion of headlines internationally. Our precious metals will erupt into one of the biggest bull markets in history — believe the unbelievable or not. Some of our gold stock picks are already rising very profitably.

Silver is still at underpriced levels, although some of its stocks are already beginning their bullish rises (our latest silver stock recommendations will be updated in our next issue of The Dines Letter).

Outside of China, we were among the very first to have identified the importance of the emerging Wuhan virus, on 21 Jan 20, and again among the first to have flashed a short-term “Buy” signal for the current rally — those are TDL’s recent creds.

Our next TDL tentatively scheduled for 1 May 20 might be of above-average importance.

James Dines is legendary for having made correct forecasts that were in complete contradiction to the rest of the financial community. He is the author of five highly regarded books, including "Goldbug!," in addition to his popular newsletter, The Dines Letter, and videotaped educational series. Dines' highly successful investment strategies have been praised by Barron's, Financial Times, Forbes, Moneyline, and The New York Times, among others.

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