XJO 0.39% 8,013.4 s&p/asx 200

It is very interesting that Gold and Oil are climbing to new...

  1. 190 Posts.
    It is very interesting that Gold and Oil are climbing to new highs right now. A couple of guys in the DJIA forum are saying that this is because the US is going to cut rates.

    Someone had some statistics that show that there is a 100% chance of the rates being cut by .25%, 72% chance that the rates will be cut by .50% and 10% chance that they will be cut by .75%.

    Gold will go up as a hedge to hyperinflation that will occur shortly in the US if the fed cuts rates.

    Now I would like an opinion - if hyperinflation is caused - creating easier access to money and more money in the economy - wouldn't that cause people to have more money to invest in the US market and therefore push it higher?
    In real terms the value of the market might be less as it may grow by 5% when inflation is growing by 10% - but it is still going up from our perspective - so most will still feel they are making money. The crash may then be invisible if this scenario were to occur over a long enough time frame.

    But I would lose money on my shorts!!!!!
 
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