Today King World News interviewed one of the wealthiest and most street-smart pros in the business, Rick Rule. Rule is founder of Global Resource Investments, which is part of the $10 billion strong Sprott Asset Management. KWN reached out to Rick to get his take on the decline that is taking place in key markets and what investors should expect going forward. Rule warned about the possibility of a collapse here. This is what Rule had to say:“Investors look at the Dow and the S&P hanging together and it takes their mind off some of the unpleasant facts, such as the debasement of the currency. It takes their minds off of the fact that the government only takes in forty cents for every dollar it spends or that we have $65 trillion of unfunded liabilities going forward.”
Rick Rule continues:
“The fact that life goes on and we don’t have to face these unpleasant truths, this takes our mind off of some fairly scary math. The question becomes, how long can this go on? The reality here is that the Dow could easily fall to the 7,700 to 9,000 area and it wouldn’t surprise me.
I think the continual injections of liquidity have been the reason for the remarkable calm in these markets. But I think we are gong to see a repetition of the time when the VIX was above 30. We will see absolutely incredible volatility going forward.
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