good posts
hope my stuff is seen in the spirit of things - as in we need to challenge ourselves a bit
Here's something courtesy of a rudimentary understanding of Martin Armstrongs writings (he has "called" this crisis very well)
Currency printing does create currency that in these times will find its way into "portable" assets. Its all about capital flow and how easy it is now to get capital around the globe.
Gold is a portable asset but so too are stocks (thats why both are doing well).
2001, 2007, S&P and equity market highs were just normal cyclic swings (and good ones to) so here we go for another high. These markets priced in gold are bear markets but they are priced in a commodity called currencY which is something else again.
Forget about non portable assets such as housing (vulnerable to Gov and there's death of the 30 year mortgage) which are starting a ?26yr cylic downturn and much of this "currency" (remeber we are talking about a paper commodity here) will find its way back into gold/money or invested into stocks of real businesses
The inflation/deflation machine called the economy that everyone plays with and which is such good business to "engineer" will have a real low with grief all round and splutter on for years but my guess is that it won't go bust
and IMO its just as likely that gold will go sideways or down as it is likely for share indexes to rise significantly to get to that gold/shares ratio of ?2 or whatever
Gold may go up -but as Armstrong says Governments will want to profit from that not individuals which was their motivation in the US for controlling gold last time round and for the legislation sitting on the books here in Oz waiting for our GG to sign
So maybe its time to buy some shares in Coles or Woolies! how's that for a contrarian thought!:)
We could just as likey end up holding $200 BHP shares and wondering why we are no wealthier, just as we are now waking up to the fact that Dad had it better with his dream of a quarter acre at $15,000 in the sixties that we do with our $1.5M McMansions now
Gotta admit that lot is different - read Martin Armstrong over Xmas - especially his paper on gold
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