SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Strictly: Drilling and oil-field services
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: BigBull who wrote (88474)3/9/2001 9:08:51 PM
From: isopatch  Read Replies (1) of 95453
 
Bullsky. Right, we're not there yet.

But the game is always one of anticipation. And you may be right that we get some deflation first. Certainly that's occurring in Japan.

But look at the difference in demographics between the US and Japan. It's striking.

Here we should see a mixed picture. Some sectors here, like tech are deflating because of the complete absence of credit worthiness of many many companies making the sector relatively low on the totem pole of likely recipients of this flood of new funny money coming from Al & Co.

But strong sectors will be prime beneficiaries of this liquidity, and continue to expand. So you have a much more pronounced rotation going on from the old leadership in the economy (and Markets) vs the emerging new leadership (IMO in natural resources and defense).

And from what I'm seeing? Al not only has the pedal all to the floor. But has actually pounded it right through those ole rotten wooden floor boards in the Fed doodle bug, lol.

Or if you prefer another image? Picture Easy Al on his board ridin' not just a tidal wave of liquidity but one of the biggest tsunamis ever seen in the history of US monetary policy.

The precious metals stocks are among the 1st to respond to this flood of liquidity anticipating the inflation which has only begun to show up in the PPI in the most recent report. Ain't no fluke. It's the new trend:

STAG-FLATION.

But maybe it's only the opinion of a few of us here. And sure. We could be wrong.

As old Ed Hart used to say, "We will know in the fullness of time".

In the meantime all any of us can do is follow our respective work and place our bets. But, to be honest Senior? I can't see 100% cash as the answer with the buck looking like it's beginning a MAJOR decline.

Yes, I lived through and was very active professionally in the markets during the 1970s.

Best

Iso
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News