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Strategies & Market Trends : Waiting for the big Kahuna

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To: GROUND ZERO™ who wrote (78100)12/7/2007 3:48:02 AM
From: Real Man  Read Replies (1) of 94695
 
Sometimes high stock prices and bearish dynamics go together,
which is why you have to look at the diluted "base", the
currency, as well as prices in that base.
Zimbabwe was the best performing market of 2007. They
have hyperinflation there, of course, and their economy
is completely gone. -g- We are marching in that direction,
but not to the same extreme -g- I'll be very surprised if
the dollar rally continues in the face of a 50 bp. Fed cut.
I'll be even surprised if the dollar does not drop 10% in
the 3 months following the cut. -g- On a positive side,
homes are made of "stuff", so they too will go up in price,
and fixed rate mortgages will be annihilated. I have one -g-
In other words, I expect that the housing bubble will be
fixed without the neccessity of deflating it in nominal
terms -ggg-

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