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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: GROUND ZERO™ who wrote (73460)7/10/2006 11:12:13 AM
From: Real Man  Read Replies (1) | Respond to of 94695
 
I agree, it's interesting. It's economic, so this means
real values for stocks should come down.

The Fed printed a lot last year. This probably
distorts the dividend picture. Stocks can show no decline in dollar terms,
yet their real value declines due to declining dollar value.
stockcharts.com
I think stocks will definitely underperform relative to
gold in the coming years, but how exactly that happens will depend on the Fed. If the Fed chooses to completely destroy
the dollar, both gold and the DOW could trade at
3,000,000,000. That, of course, would result in a total economic nightmare - the US industry will be completely destroyed (it is,
already!!!), while banks and speculators will be enriched
(they are, already!!!). It will
leave J6P completely broke (he already is).
So, I HOPE the Fed will do the right thing. A recession now
is really the best option for this country. So far, it
appears, they are locked in avoiding it at all costs.



To: GROUND ZERO™ who wrote (73460)7/10/2006 11:35:34 AM
From: Real Man  Respond to of 94695
 
I think that the Fed knows about the nightmare of hyperinflation,
so they will move to defend the dollar and remove excess
liquidity as soon as a break is evident. Until then, they will
continue to provide it. That's just my thoughts, though. I
have no idea what they will do.