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Strategies & Market Trends : Commodities - The Coming Bull Market

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To: craig crawford who wrote (1)5/31/2001 10:27:12 AM
From: John Pitera  Read Replies (2) of 1643
 
Hi Craig, A very good topic for a thread. I also believe that we'll see a shift in asset classes out of paper assets
and into harder assets, such as Commodities, Real Estate, Precious Metals etc.

These moves are like tectonic plate shifts so it takes quite a while for them to develop and mature. One of
the trickier aspects of the next year is that most assets may go down in price, thus prompting even greater
monetary stimulus, which will be so Powerful that it will get the Reinflation Leg of the Macro cycle or K Wave
going. AJ Frost and Prechter's book written in the late 1970's was looking for the bottom of the K-Wave in 2002
or 2003, and I know of several others who are considering a low in this time window. Most Asset classes
will have a tough time appreciating much until we reach bottom.

One can even speculate that this is why the US Dollar has been so very strong and is back to the highest
level in 15 years. It's reflecting the relative underperformance of holding other assets classes, currencies etc.

One would expect "Cash in the Mattress" to be the best place for one's money at the nadir of the K-Wave,
much as it was in July of 1932.

John
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