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To: TheSlowLane who wrote (40132)6/12/2006 10:26:28 AM
From: nspolar  Respond to of 60926
 
It is quite possible that the global markets are at the beginning stages of a multi-year deflationary cycle. The cycle could last for 6 years or so.

Under this scenario I tend to think commodities will get hit fairly hit, initially, since they have risen so much. It is the higher they are the further they fall scenario.

AFA gold/silver .... it is at this point a crap shoot as to which way they go. If the deflationary cycle is driven by some sort of financial melt down we have yet to see, then the chances are good they will go counter, but probably not because of their commodity value.

Droke published some excellent cycle work a while back, work that I tend to agree with.