someone wants out at 10c in a big way, page-6

Hi Kerbey,

I think you're spot on re inflation 3-5 yrs out. All the recent money printing (and that yet to come) will have to pay the piper down the track.

IMO Govt Bonds are the bubble of the moment, in the same way equities and real estate have been in the past. Yields will revert to mean (or likely above for a sustained period) in due course, which will mean 50%+ capital loss on current bond prices (hello higher insurance premiums for all in 5 years time). There will be a lot of people who switched out of equities after the bubble burst to bonds, only to see the same happen again.

I find it informative to check out the Dow:Gold chart for the last hundred years to see where things are at.

I think looking at gold for the last decade, we're set to drift lower over coming months to around US$1450 to retest the 11 year support - I guess a strong break either way after that.

Will be interesting to watch the Fed pre election re QE3.

The current market is full of falling knives; it all depends on risk tolerance whether you want to catch a few!