Hi ACF Mike, <<The question ... is - will this bring us closer to a top in stocks and a bottom in gold, or vice versa?>> Why the question? Is the FED announcing restatement of the 1990s tonight? If not, then no hurry for the question, much less the answer:0)
Mike, the rot goes all the way to the very tip of the top. WCOM, ENE, ... are all simply the exposed portions of the iceberg.
Here is the vicious circle, mirroring the virtuous something else:
(a) global electorates losing confidence in FED
(b) repatriate funds
(c) stocks fall
(d) USD fall
(e) repatriate more
(f) bonds fall, interest rise
(h) mutual fund redemption
(i) USD fall some more
(j) once more, iterate, and yet again
(k) stability returns
(l) long struggle upward, until
(m) new abracadabra, if good abracadabra
Chugs, Jay |
