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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: 8bits who wrote (8747)	7/6/2004 2:14:14 AM
From: ild	Read Replies (1) \| Respond to of 116555

Well, it is a real problem for US markets if Saudis still own many billions is US equities. With their relationship with US becoming worse they now must be taking funds out of USD. OTOH there are very few other financial instruments deep enough to park that big money without disruptions. The whole world is awash in USD. As a holder of gold stocks I hope a few more billions of paper money will spill into gold.

To: 8bits who wrote (8747)	7/6/2004 9:07:26 AM
From: Tommaso	Read Replies (1) \| Respond to of 116555

>>>If you consider that through much of the late 70s and early 80s a barrel of oil was almost the same price it is now and that the S&P 500 and Dow were almost 1/10th the of current prices<<<< Are you talking about the dollar price of oil or the inflation-adjusted price? I just found a table that shows oil selling for over $34 in Louisiana in 1981-82, which I guess is in the range of where we are now--and as you say, the finanacial market averages were 10% or less of what they are now. That is why I am heavily short the stock markets (using LEAP puts on the QQQs and bear funds: BEARX and RYVNX) and at the same time heavily long various kinds of energy stocks, especially Canadian energy trusts. I expect energy prices to more than double and the general financial markets drop by 50% or more from where we are now. (Just looking at North American markets).