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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?


To: yard_man who wrote (1621)10/9/2003 8:37:50 PM
From: crustyoldprospector  Read Replies (1) | Respond to of 108713
 
Tippet,

" I don't think you can look at that in isolation -- if the dollar is at 80? -- where is gold with respect to other currencies and who says the dollar is going promptly to 80 -"

I don't think "the dollar is going promptly to 80," but do consider it a possibility. Hence, I examine what would happen in that case, or, as I mentioned in the post to which you responded, what would happen if it went to 80 one year from now (unless you think one year is "promptly?)

"I don't think you can look at that in isolation" ... you have that exactly wrong IMO! The only way to understand a relationship with infinite possible outcomes is to run a number of different but isolated cases and infer the trends between those cases. If you don't work isolated cases, then you are you are left with general trends (dollar goes down, gold goes up) without a firm grasp of their magnitude (goes up linearly, by factor 2, expotentially, ?).