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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.22-0.2%Nov 21 4:00 PM EST

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To: TobagoJack who wrote (50177)5/17/2009 8:35:35 PM
From: prosperous  Read Replies (2) of 217942
 
Good article. The best course of action through this mess may to go through deflation of bloated asset prices first and then build up from there; the powers that be will not take this path leaving the other two options open: either induce inflationary depression or a monetary reset. In the latter cases gold will be a worthwhile asset to hold; only in a deflationary clearing gold may not do as well; the real question is what % of the portfolio should one allocate it to gold? no matter what choice one makes, any rational answer to this will seem too inadequate in retrospect. The reason being in order to maintain one's asset value it would point to a very large % holding in tangible assets (>20%) which is a high risk considering normal portfolio measures. However, these are not normal times and its not clear if diversification in traditional sense would be useful in getting return of the investment because of massive market interventions; its not clear how well the principles that have worked well in free markets will work in controlled markets and we are past that inflection point.

From investors perspective, they need to guard their own interest against the SACME (Sinter/Screw American Citizens in the Middle class in Entirety) project that is ongoing by not believing in the media news and understanding that this economic cycle is not a normal one. They need to keep faith in their actions for long haul and acting on that without worrying about day-to-day fluctuations

We will see a lot of turbulence over next 2 years and lot of market movement, not all of which are trading opportunities, those who get sucked in will likely pay dearly and part of the statistics that bears maul everyone equally...
Looking at recent gold premium and cot numbers may be another potential buying oppty developing in gold
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