Short term only. This is a monthly chart, and the fundamentals
favor gold in a big way. It is going much higher during
the strong season (August-February). My target is 1300-1400,
with the time frame of February/March 2010, or even higher.
I am rebalancing my gold portfolio, hoping for one last
dip into low 900-s. Oil is a good bet too. Deflation is
being displaced by a mess of Argentina type. However in
the US it all is happening much slower. Like a sinking Titanic,
it will likely take some time, some stock market strength,
etc. The bottom of the ship, the real economy, knows it is
sinking. It was sinking for 9 years now, and unless measures
are taken to restructure the economy (more real economy,
less credit bubble), the ship will sink to da very bottom.
Hyperinflation is da very bottom. No real economy is left,
all production goes to a halt, and the country sinks
into a complete chaos. It is worse than the Great Depression,
much worse. It is the worst possible outcome of the mess.
The monetary policy so far? More of the same. Less real
economy, more bubbles -ng- |
