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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?


To: Box-By-The-Riviera™ who wrote (1231)9/8/2001 2:10:21 PM
From: gold$10k  Read Replies (3) | Respond to of 36161
 
Joel, the more I think about your point, the more sense it makes to me. Once bond yields stop falling, making bonds less attractive, investment demand for gold and gold mining stocks will overwhelm whatever has held them down, because stocks and the dollar are also no longer attractive and there's nowhere else to go. This makes me wonder when bond yields will stop falling. As I understand it, longer term T-bond and corporate bond rates are only indirectly affected by the FED's easing and are more influenced by inflation expectations (please chime in, anybody, if you have a better explanation). Could the perceived end of the FED's easing be the signal for bond yields to rise? Bond yields are already near as low as they've been in the past 8 years and as Isopatch has been reporting, Easy Al has been liquifying to the max, hence inflation must be in the offing.

bigcharts.marketwatch.com

I'd be interested in hearing more discussion on this subject.

vt