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

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To: mishedlo who wrote (37869)8/5/2005 1:04:06 PM
From: russwinter  Read Replies (4) of 110194
 
Has to be a big global slowdown underway, and a flight to safety trade being set up:

kitco.com

The BDI chart seems to be predicting a significant slowdown in global economic activity which, for the world’s stock markets, would mean the end of the cyclical bull market and a return of the secular bear market, and probably with a vengeance. For the world’s capital markets, the dropping BDI should, in theory, mean lower interest rates. But in the debt-ridden US, a declining economy will cause an unprecedented real estate implosion for starters, which logically would cause interest rates to rise as defaults soared and the mood of Americans changed from fearless to fearful.

For the world’s gold devotees, fear has been the missing ingredient, which has kept the precious metal in the doldrums while real estate has been in the limelight. If fear gets a grip on world markets, gold will suddenly become the preferred chaos hedge.
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