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

To: longdong_63 who wrote (25303)	1/10/2003 2:20:17 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 36161

Gold shares stronger than POG today, A very welcome development if it continues.

To: longdong_63 who wrote (25303)	1/10/2003 2:28:09 PM
From: Canuck Dave	Read Replies (2) \| Respond to of 36161

The 70's with one small difference: Debt. In 1975, the US was still pretty solvent. It survived stagflation and moved on in the 80's. Speaking of the 80's, I realized something this week. I was never a fan of Reagan and his deficit military spending, but I had to grudgingly admit his supply side economics pulled the US out of an economic haze. But that's not what happened. You look at the mean P/E of the S&P, and by 1981, when Reagan was inaugurated, the corporate balance sheets and dividend ratios were already in really good shape. Investors hadn't discovered it after 15 years of bear markets and the Asian "miracles". This was under Ford, and mostly under Carter. The US was coming out of stagflation all on its own without massive fiscal stimulus (mostly to the rich). The monetary excesses begun after 1981 paved the way for the mess we're in today. Reagan is the father of the deficit, not the recovery. CD