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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (44110)	12/31/2003 9:38:22 AM
From: Condor	Read Replies (1) \| Respond to of 74559

So...the only way to play the game is to outperform inflation. Presumably that means equity markets and perhaps your favourite.. gold and also currencies speculation. That presents a rather unnerving situation for seniors. They are forced to speculate when they should be hunkering down. It would appear the scene is set for theft from the aged and the unknowing. Cheers (;O/) C

To: TobagoJack who wrote (44110)	12/31/2003 1:42:47 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 74559

2003 was a year when the dollar plunged and just about everything else rose. Starting fairly soon i expect to see the reverse -- a rally in the dollar as stocks, bonds, and commodities correct.

To: TobagoJack who wrote (44110)	12/31/2003 8:16:07 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

Inflation can construct instead of destroying. If you can keep your assets inflated against the ones who can't protect against inflation you can get immensely rich within inflationary period. Inflation, in this case., is no more than a tax on the individuals who can't protect or hedge against inflation. In short, you're taking from them (the ones not protected against inflation). That's why the world always needed cheaper commodities. Producers of cheaper commodities could not protect themselves against the inflated industrial products that have to import, always having deteriorated terms of trade. It always needed more bags of coffee, cocoa of barrel of oil, to import the increasingly costlier machinery, power stations or chemicals. Teh first time this had a correction was when the OPEC inflated oil prices by 1973 and again in 1989. (Pity that pezz don't read more than two lines of my texts). Inflation can be exported this new year, if commodities rises as the whole world kicks up into growth. My point was in posting Message 19640739 that the raise in prices of commodities last year was only with SEA and China growing, if the rest of the world would kick start -a little in LATAM a little in Euro zone and Japan or even with the US not stagnating- prices of commodities would zoom skywards. This would cause the importing countries to import inflation -via higher commodities prices- even though they would be deflating via cheaper products churned out by China and other Asian countries.