VRA Update: Muslim Extremists and Our Future

With Paris under attack last week from Sunni Muslim extremists, the markets were extremely volatile. We have now entered what I believe might soon evolve into the next world war. The 4-5 various Muslim extremist terrorist groups...all radicalized Sunni's...believe only in Sharia law, martyrdom and conversion or death to all Jews and Christians. They control huge amounts of territory in the Middle East and throughout Northern Africa, with funding from multiple Mid East sources.

While the world was watching terror in Paris, quite likely the most brutal of all Sunni Muslim extremists, Boko Haram, is widely reported to have slaughtered 2000 innocent villagers in Nigeria.

Together, these separate but still closely connected Sunni terrorists are working towards one common goal; a global caliphate that eventually rules the entire world, all under Sharia law.

Make no mistake about it...left unchecked, these groups could soon make up the most serious threat to our way of life since Hitler and WW2.

These radical Muslims truly believe that by killing innocent civilians and then dying for their faith, they will enter heaven and pass go right to their 72 virgins in waiting. The first person that actually said this out loud had to have been laughed out of his community. Delusional doesn’t even come close to describing beliefs such as these, but as history has shown time and again, desperate people breed desperate ideologies. 

It remains to be seen whether or not leading countries have the stomach to do what's necessary to destroy these groups before they take down multiple aircraft with shoulder fired missiles, of which thousands are still missing from Libya, or worse, detonate a dirty radioactive bomb in a major European or American city, but in addition to the black swan events represented by central bank money printing, Sunni Muslims are right at the top of this list.

Just another powerful reason to own gold and silver.

However, from an investment point of view, the most important things to keep in mind are:

1) The markets trend is still higher (short, medium and long term).

2) The Fed will not raise interest rates anytime soon, and likely will not do so at all this year. "Don't fight the tape and don't fight the Fed" remains the dominant theme for smart money investors.

3) Precious metals and the miners are breaking out and the bull market looks to be back. At roughly $22.80 the miners (as gauged by mining ETF GDX) will break its 200-day moving average and at that time, billions in fresh capital will flood into this sector. As I have been saying, I am 80% certain that the bull market is back in this group…the profits that we are going to make going forward will be stunning.

4) The next big market moving news will come from Europe, Japan, China, Russia and South America. My best inside sources are now telling me that the amount of central bank intervention and fiat currency printing will be staggering. Look for this news to go public beginning as early as the coming week.

I continue to look for higher stock markets around the world over the next 4-5 months before we ultimately see a 10-20% correction. The markets love to climb a wall of worry, and with fears of terrorism, crashing oil prices and increased financial volatility; I expect that this stock market will continue to climb that wall. This is the contrarian view and in my mind, the correct one.

Any number of Black Swan events could take the markets down 20%...and in a hurry...but this looks to be a 2016 story.

Until next time, thanks again for reading.

Kip Herriage

VRAletter.com