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Strategies & Market Trends : Ride the Tiger with CD

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To: loantech who wrote (2103)1/10/2004 2:46:47 PM
From: Canuck Dave  Read Replies (2) of 312438
 
"Will there be a major dollar bounce?"

I've been doing a lot of thinking about your post and this issue. The short answer (as always) is "maybe", The factors I am looking at suggest any dollar bounces may be minimal.

1. US is up to its ears in debt.

2. Euro zone is resisting going into the competitive devaluation business.

3. The Forex and bond markets are HUGE with many players.

4. China and Japan have the desire and the means to keep things going as they are.

Which suggests to me that as long as the dollar drops slowly and the bond and stock markets stay buoyant, a managed, orderly decline in the dollar and a concomitant rise in gold will occur.

Screaming bull markets in base metals have been quietly absorbed with no apparent repercussions, and a similar one in silver will be, too.

So...... Things will continue as they have with very few noticing the big changes going on.

Got silver?

CD
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