Hi Roebear,
Thanks for the welcome:)
Let me answer the last part of your question first. Regarding Gold, I believe (and I'm am depending somewhat on the charts for that belief), that we entered the beginning of a new Gold bull market. Regardless, of what Greenspam does, he & by extension, the US economy, is screwed. Which of course is very bullish for Gold.
I know I must sound like a broken record, but the charts of almost any of the Gold miners are very bullish in any timeframe - monthly, weekly, daily & in some cases hourly (except most of my juniors on todays 15 min chart <ng>)
Gold is very sensitive to the economy. Almost akin to the canary in the mineshaft. Something is happening to the economy. I don't know what it is, but according to the commodity charts, we have been in a period of disinflation which has now probably migrated to deflation
In periods of deflation, Gold is the only monetary unit that maintains its value.
If the FED cuts interest rates by another 25bps, I think the market will shrug it off & head south. If the Fed cuts by 50 bps, there will be panic in the streets <g>
I saw some interesting analysis on CNBC, (of all places!) where one of the traders suggested that the FED would be better off doing nothing & taking no action the FED might be able to instill some confidence in the market. Sounded logical to me... But I really don't know what I'm talking about most of the time <LOL>
Regards,
Peter |
