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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Terry Whitman who wrote (19765)9/22/2001 10:45:53 PM
From: Paul Shread  Respond to of 52237
 
Great piece, courtesy of Allan:

"Now there is little doubt that Greenspan and his ilk hope to smoke out bond money by eviscerating the entire debt market through rate cuts, inflation, and negative real rates of return. But, to where will that enormous amount of capital flee?

"Wall Street, the politicians, and old Greenspan himself pray it sloshes into embattled US equities. Bond investors are a very intelligent group, however, and they know that investing in generally way-overvalued stocks in a post-supercycle bubble bust is the equivalent of committing financial hara-kiri, ritual suicide. While Wall Street shills continue to entice naive small investors to their doom, big smart money sells into all the bear market rallies and is getting the heck out of dodge as the equity markets plunge to new lows....

"Not surprisingly, although negative real rates of return are rare, they have happened before in the last four decades. When the US government started to recklessly deficit spend in hopes of “stimulating” the economy and the Fed promiscuously ran its printing presses in the recent past, one often ignored investment class always shined brightly. Gold."

zealllc.com