Date: Wed Feb 09 2005 16:09
trotsky (frustrated@yields) ID#248269:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
thanks...as always, i'm agnostic about the short term, but i continue to believe that yields will head still lower in coming years. still, there will be significant corrections along the way - and my feeling is the next one could come as soon as the current rate hike campaign by the FOMC actually stops.
if it happens that way, it would be very bullish for gold, and even more so for gold stocks.
Date: Wed Feb 09 2005 15:54
trotsky (Hambone) ID#248269:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
"A shift in the rand coming?"
the Rand is already 65 cents below its high of last year and sits at a 4 month low. the shift has already begun iow. the question is whether it can keep going down...we'll see. fundamentally, it should...but you know how it is with fundamentals. they don't count until they do.
Date: Wed Feb 09 2005 15:50
trotsky (bw) ID#248269:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
"Lock in the low rates of return?"
in reference to bonds - a common misconception. nothing's 'locked in', since this is an extremely liquid market, and one can buy and sell vast quantities every trading day. also, we're hearing this 'low return' spiel since i don't know when, but what about the actual returns that have accrued to bond holders thus far?
they've been spectacular.
Date: Wed Feb 09 2005 15:41
trotsky (mini miner) ID#248269:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
re. 'monetizing the debt' - there is in fact zero evidence for this at this stage, it's merely the excuse you hear muttered in bond bear circles i believe ( such as the inflation-believers in the Puplava camp, as an approximate pinpoint ) .
in fact, since it turns out Japan has stopped adding to its load a while a back, one really has to wonder why the market keeps rallying, unless one accepts the simple but elegant solution that the problem isn't inflation, but its opposite.
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