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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: UncleBigs who wrote (64958)6/30/2006 9:40:50 AM
From: Real Man  Read Replies (1) | Respond to of 110194
 
They will diverge in the dollar meltdown phase, which the Fed
may have triggered Yesterday. Looks like the Fed's credibility
for the currency market is gone with the wind.



To: UncleBigs who wrote (64958)6/30/2006 9:46:19 AM
From: Tommaso  Read Replies (1) | Respond to of 110194
 
>>>so gold is moving up for righteous reasons but small cap stocks are moving up because of stupid hedge funds and individual investors.<<<

Substitute "possibly intelligent" for "righteous" and, yes, in fact that's what I think.

Only half of the charts you posted correlate. The divergence from March through early May is pretty remarkable.

I am much more of a small cap bear than I am a gold bug, and have five times as much money in RYVNX as I have in PMPIX.



To: UncleBigs who wrote (64958)6/30/2006 12:21:44 PM
From: patron_anejo_por_favor  Respond to of 110194
 
It's all liquidity sloshing around, if you ask me. No more and no less, gold, commodities, stocks and old maid cards are all liquidity plays now. More liquidity: assets higher. Less liquidity: assets lower. Simple as that.