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Politics : WAR on Terror. Will it engulf the Entire Middle East? -- Ignore unavailable to you. Want to Upgrade?


To: Rarebird who wrote (12859)2/19/2006 8:58:57 AM
From: Chas.  Read Replies (1) | Respond to of 32591
 
Hi Rarebird, I am oversimplifing but if gold/oil/metals/RE/Stocks bother you for the fear and risk aspects then get liquid, the sooner the better.

Pay off your house, eliminate all credit cards, cash in all securities and get liquid.......

that is the answer...

you may be the only one in the neighborhood safe and sound financially...thats ok we will all gather at your house to make plans for the future...

I am looking forward to it....

keep me in the loop...thanks



To: Rarebird who wrote (12859)2/19/2006 10:25:27 AM
From: John McCarthy  Read Replies (2) | Respond to of 32591
 
just curious ....

what should I infer from this ....?


The Gold and Oil markets took a nice little tumble after the most recent Fed. Funds hike.

That was a signal that the Fed has now become restrictive


(a) that there is a direct correlation between interest
rates and the price of gold .... (at least in the long
run)

(b) that a tough Fed stance (i.e. higher interest rates)
will lower gold prices ... over the long run .... or
at the least impede the current aggresive increase in
price .....

(c) there is no long term direct correlation between
interest rate levels and gold prices ....

(d) something other than a/b/c ....

(e) if gold continues to rise even after the March rate
increase .... what does that mean, if anything?

regards,
John McCarthy