We think things will get worse before they get better. The breakdown in gold shown in the chart below is likely signaling another liquidity crunch like we had in late 2008, and we think it could bode ill for the markets in the near- to intermediate-term. In the chart below, note that gold broke down below its 200-dma in August of 2008 and stocks followed soon thereafter, in September.
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Seeking Alpha - Outlook For 2012: Things Will Get Worse Before They Get Better
20 December 2011