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Pastimes : The Philosophical Porch

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From: Rarebird8/5/2005 10:02:53 AM
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These markets are rampant with metaphysical speculation. In the late 1990's the Internet stocks were tacitly assumed to be God and outrageous long term growth rates were assigned to some of these companies. When expectations were not met, the dot.coms became dot.bombs.

Just about every piece of economic data that comes out is rife with metaphysical speculation. Today, based on the .4% rise in hourly earnings, many are speculating that the Fed will need to raise Fed Funds well past 4% in order to curb inflation. Yesterday, weak retail sales data prompted speculation that the economy could be slowing.

It is as clear as noonday light to me that after such tremendous deflationary fears from mid 2000 through 2002, that these markets are now entering an inflationary boom. I am calling for an extremely strong rise in equity asset prices over the coming years. I'm a big Gold Bull too.

Ride the Wave up.

But be aware that "the way up and the way down are one and the same way".

That is to say, make sure you take profits on the way up; for they may no longer be there on the way down.

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