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

To: Ruffian who wrote (4585)	12/8/2003 7:34:01 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 108946

gold benefits whether the Fed changes bias or not whether they raise rates or not THE FED HAS BEEN CAUGHT IN A BOX FOR TWO YEARS that is precisely why I am invested in gold if rates remain at 1% on shorterm, then the negative real rates continue to feed the underground golden aquifers with cheap money and grand monetary expansion (called inflation) if rates are raised, then the bond market will release untold capital into other investment vehicles since rising rates hurt bond holders, they will flee as price inflation reappears, bond yields will continue upward some bond money will find its way into stocks but with higher yields, stocks will get hurt with higher borrowing costs, corporate earnings will suffer reflation efforts will not assist profit margins not when production costs, energy costs, import costs are rising NO WAY so money will come out of bonds if they stay put on rates or bias so money will come out of bonds if they hike or relax their easy bias GOLD WINS EITHER WAY AND WILL CONTINUE TO WIN EITHER WAY GOLD RULES, JUST LIKE IN EVERY OTHER CENTURY / jim