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


To: isopatch who wrote (5250)12/12/2001 7:45:07 PM
From: pater tenebrarum  Read Replies (2) | Respond to of 36161
 
yes, i agree, this is a beginning deflationary era. in fact, i date its beginning with the summer of '98, which was the time bond and stock markets finally decoupled.
and it is clear that the comparison with the early 30's crops up, since that was the last deflationary era we've experienced. there's probably no need to enumerate the countless stunning parallels of the 1920's and 1990's booms. of course it WILL be somewhat different this time, and i am more than happy to debate the topic further.
so far, in typical primary bear market fashion, everything that COULD go wrong, DID go wrong...and i expect we will see more of that.
anyone who doubts that we have embarked on a most dangerous slippery slope need only look at the global central banker rate cutting panic. this by itself proves what the nature of this beast is, but it is not the only proof.

as to how gold related investments fare during deflation, here's an encouraging blast from the past:

gold-eagle.com