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Strategies & Market Trends : Raptor's Den II

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To: da_cheif™ who wrote (303)4/19/2003 10:57:58 PM
From: Secret_Agent_Man  Read Replies (1) of 3432
 
I don't see how Prechter can be right about gold. The US dollar if it is indeed the inverse of gold, will decline in a deflationary environment. People will not buy dollars to invest in this country if asset prices contract. This will lead to a massive sell-off in the dollar. I do not believe Prechter has accounted for the ease of money-flow in today's world. His theory is cash will be king. Well, yes it will be when deflation ends but that doesn't mean you stick your money in a mattress. You put it into something with yield, whatever that might be.

what do you think?
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