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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Voltaire who wrote (51376)5/13/2002 5:11:40 PM
From: Jim Willie CB  Read Replies (1) of 65232
 
deflation is bigger impetus for GOLD now than inflation

this is the most misunderstood factor out there today
and you fall into the trap

check out Japan
extreme deflation and a 7-10 fold increase in gold purchased
gold buyers have saved 60% versus simple yen holdings
and saved 80% versus simple Nikkei holdings

gold protects from currency instability
and right now the dollar is in danger
in case you havent noticed, the MINDSET of currency traders has changed since the new year began

the funny part is that we might continue to see both INFLATION and DEFLATION simultaneously
prices falling in the tech sector and elsewhere
prices rising in the entire energy complex
the basis of a possible perfect storm when combined with currency problems
dont take the USdollar for granted, myman

key word: CURRENCY MINDSET
please, keep arguing, but dont agree with me on gold
I want it to happen as planned
the essence behind profiting will be to disagree with you when macro economic forces are at work
and now, they are at work in a big way

do you remember the mid-2000 INVERTED YIELD CURVE ??????
the investor sentiment called for a stock recovery in August
but the macro forces totally trumped it
think: CONTINENTAL SHIFTS

the bond market is 5 times larger than the stock market
and now bond holders are not happy about low rates
they DONT trade on sentiment
/ jw sbg
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