SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: edboyl who wrote (60656)5/2/2002 5:25:49 PM
From: Ron Dior  Read Replies (2) | Respond to of 99280
 
PLease explain to us all how inflation is going to usher in the bull market you speak of

AG has already explained how inflation is crucial for the economy.

This is contrary to what is the norm right now but was not always the case. During the later 1950’s inflation boded well for stocks. This market has been played with or manipulated so much that no one has a clue where the balance of deflationary or inflationary powers lies. The FED in trying to make it better has made it worse. Also this manipulation has disallowed the market to know where the appropriate rate of interest should be. The lemmings follow the FED lead as usual.

As soon as the FED saw us heading toward depression junk status they started to artificially pump. This is why gold has reacted the way it has and why rates have continued down through similar targeting. This also hurt pricing power on all companies including technology. IT spend got killed due to this manipulation.

Now because of the FED inflation is something that cannot be stopped but must happen. Stock prices will also rise due to the higher returns/profits. Eventually the FED will have to raise rates. When this happens which could be one – five years, then I will reassess whether or not I am still bullish.

Ron Dior