30 minutes till ECB announcement!, page-62

Hi Timber,

I have a theory for you to think about. While America increased liquidity and lowered rates their assets were buoyed. This attracted investors to their equities from all over the world as it had the lowest opportunity cost. Gold fell from 1900 to a relatively untouched floor of 1140 as the bull market was tantalising. Now that the Europeans are copying America just as the Americans wind down I hypothesise that money will flow out of American assets and join the European asset rally. The European and Japanese bourses will have the lowest opportunity cost. I believe that this will subdue gold at the very least for 12 months. The only counter intuitive issue I see is if America deflates causing a crisis that the European rally wont be able to solve... please give your thoughts on the intracasies of the situation.

Cheers