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


To: Paul Shread who wrote (20095)9/27/2001 7:49:51 PM
From: isopatch  Read Replies (1) | Respond to of 52237
 
Paul. I'd bet a lot of well know WS pros will not recognize

the new deflationary environment right away.

Think of the massive monetary stimulation like a Trojan Horse that will disguise the arrival of deflation from most observers. That being the currency is debased during BOTH deflationary and major inflationary periods. Debasement of the currency occurred during the 1930s deflation in the same effort to refloat the economy we're seeing from the Fed right now. And now, like then, Gold will be almost the only commodity to benefit.

What will convince some skeptics IMO will be the impact of further terrorists attacks on world trade and economic activity.

People will begin to realize that this isn't your typical post WWII global recession. That the level of fear generated by this Terrorist World War will cause a much greater contraction in world economic activity than all but very few are currently expecting.

JMHO, for what it's worth.

Isopatch