This is how markets were in 1987 and how they recovered.

• Note that in 1987 we had a second bottom (some may have called it the final leg) which was a bit higher than the initial one. Having said this, it is possible that this time we have a second bottom which could a bit lower than the 1st one. This would just scare hell out of everybody, turn sentiment extremely negative and so enable for an upleg.

• Again, what we have today CANNOT be compared to the situation of the Great Depression as at that time we did NOT have Fiat Paper money as we have today. Add to this that we also did NOT have all these uncontrolled derivatives and credit default swaps which are - I have no doubt about it - a great help in manipulating the financial markets. Hence today's situation must be compared to what is happening in Zimbabwe.

The Great Depression: this is how markets were advertised in and yet they still crashed. Today the sentiment is rather the opposite. Most analysts fear a second down wave 'C' which is supposed to take the World Stock markets a lot lower. This is not our opinion.

During the Great Depression, Gold still played a role in the money supply. Many investors fail to remember that at that time, we had a DEFLATION because the authorities were limited in the amount of money they could create. Germany did have a hyperinflation (Weimar revolution) and the Mark crashed because at that time the Money supply was NOT limited by Gold.

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