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

To: ggamer who wrote (76183)	12/20/2006 12:51:02 PM
From: Mike Johnston	Read Replies (3) \| Respond to of 110194

That's why past relationships between different markets (such as dollar and interest rates) don't seem to be working. Who would have thought few years ago that oil would go up 200% , copper 400%, housing 200%, gold 100% and S&P 500 at 1450 and bond yields would stay below 5% ? I challenge anybody to come up with any example of someone who had predicted such an outcome. There isn't anybody, because such an outcome runs against economic theory.

To: ggamer who wrote (76183)	12/20/2006 1:13:00 PM
From: Real Man	Read Replies (4) \| Respond to of 110194

Yep. I was wrong. The stock market bubble of 2000 has exceeded all previous stock bubbles combined, so every bear has thought we had just an intermediate term war rally that started in 2003. SP500 and Nasdaq did not reach new highs, but the DOW and R2000 did. The market has a pinned look, I agree with Russ. The trade deficit is 8-9%, so the dollar should collapse, while rates should go through the roof on all the printing. That isn't happening. The market is at high valuations, so investing does not make any sense. I wonder what does, under these conditions? P.S. DOW close 12/19/2003 was 10,278.22, not 8,000. DOW/Gold ratio (DOW in honest money) has hit a new LOW of 15.8 in May 2006. Funny what all the printing can do in people's minds - stocks are going up. I think if the DOW goes to 100,000 in 2 years, gold might go to 200,000, and we may have a hyperinflation problem -g- P.P.S. The dollar has dropped against emerging market currencies in recent years. Inflation is 20-30% per year in these countries.