The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (4281)	1/2/2004 9:18:10 AM
From: TimbaBear	Read Replies (1) of 110194

If the dollar has fallen 20% versus the Euro, and the optimum price of gold is $350, then 120% X $350 puts gold at $420 just to maintain the same valuation in USD terms. If the outlook for the dollar is to keep falling, not only will the market price that outlook, but will also price in the move toward higher demands as fear begins to be wider spread. The same rationale of the market valuing hard assets in some "real" formula, I think applies to US housing and to commodities. I think the "bubbles" (when viewed as priced in USD) aren't nearly as far off the mark as "conventional wisdom" thinks. Of course, some over-reaching due to enthusiasm (greed) is to be expected. Just my 2 cents. Happy New Year everyone! Timba (back to lurking mode)

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