yep - im digging your vibe NTIVFF... just testing the edges of...

yep - im digging your vibe NTIVFF... just testing the edges of your view to see if I understand... Just because I disagree with you doesn't mean I'm being unconstructive... I would have thought that trying to test your opinions, to get you to qualify your meanings in greater detail is the essence of constructive. That's all I'm trying to do. I said nothing offensive - and meant nothing offensive.

However - I did misquote you - you didn't say 'technical' but 'speculative' - although that probably only increases my confusion. But okay - now you say it doesn't matter what we label the cause... technical, fundamental... I suppose that goes for speculative as well? In which case - what are we talking about?

Your absolutely right about bonds. I've been thinking a lot about how it is that the dollar could be falling, equities rising and yields on bonds dropping, and gold rising of course. Now some pundits are saying that not every market can get this right.

But I think the answer is likely that the inflation created by the fed is being fed into equities - while the real economy continues to suffer from various deflationary forces - hence the bond yields. Since inflation itself is a concept with different application (cpi inflation, asset inflation, monetary inflation etc) - so too can different markets be responding to these different concepts. The stock market and probably gold are responding to the monetary inflation while debt markets are looking more to prices of real world goods going forward.

Now you can disagree with this hypothesis - that's fine. But I'm going to take a stand on my right to assert it. It's an inference to the best explanation. And it fits the data as well as anyone elses as far as I can see. But if I've missed something please feel free to point it out. :)