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To: Trumptown who wrote (272693)	1/5/2004 3:30:47 PM
From: Tommaso	Respond to of 436258

Might have been somewhat like that in 1973 as inflation really began to take off and before the stock markets crashed. But I didn't follow commodities then. And interest rates were much higher. Not really high, but a lot higher than Greenspan's fool's paradise.

To: Trumptown who wrote (272693)	1/6/2004 12:57:13 AM
From: Simba	Read Replies (3) \| Respond to of 436258

Equities do well if the expected inflation in the near future will be low and/or real earnings growth will be high. commodities do well if the expected inflation is high. Both going up together implies one of the market is "wrong" and it is most probably the equities. At some point the interest rates will reflect the expected high inflation implied by the commodities and the stocks will head south. Bush will hope and try to push that point after he gets back into the WHouse. Simba