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Strategies & Market Trends : The coming US dollar crisis

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To: Real Man who wrote (3592)1/24/2008 10:53:47 AM
From: Tommaso  Read Replies (4) of 71456
 
The Fed is once again in its aggressive bubble-blowing mode.

My reasoning may be wrong, but so far we have had:

--several kinds and degrees of equity bubbles

--a real estate bubble

--the current bond bubble

So what's left? Those who do not believe that commodities can be a good investment claim that there is already a commodity bubble.

I think I will go with Jim Rogers and argue that the commodity bubble is only about 35% inflated. Which commodities have the farthest to go?

1. Food. Supplies are low, China and India want better diets and can pay for them, and there have been several years of good growing conditions in the United States that can go wrong any time.

2. Oil. Running out, despite what kooks like those Cambridge Energy or whatever people claim.

3. Natural gas. Very much in oversupply for the moment, constantly being depleted.

4. Gold. Store of value against fiat currencies.

5. Everything else. A mixed bag, with individual commodities subject to temporary oversupplies or shortages.

I think that investments in these areas will double in value IN REAL TERMS, INFLATION-ADJUSTED over the next five years.
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