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


To: pogohere who wrote (79654)3/3/2007 3:14:17 PM
From: orkrious  Read Replies (1) | Respond to of 110194
 
Do you have a chart for this? I've pursued this notion and couldn't come up with solid validation.

Not offhand. I know Heinz has talked about it for the last seven years. Also, it was true during the steepest part of the HUI run since this bull mkt started, from late 2000 through mid-2002.



To: pogohere who wrote (79654)3/3/2007 5:12:03 PM
From: bart13  Read Replies (4) | Respond to of 110194
 

Do you have a chart for this? I've pursued this notion and couldn't come up with solid validation. Thanks.


It just so happens that I have one. It doesn't look like that great a historical correlation from here.




To: pogohere who wrote (79654)3/3/2007 6:15:01 PM
From: orkrious  Read Replies (2) | Respond to of 110194
 
Bob Hoye doesn't chart it, but he has looked at it over a period of 400 years.

institutionaladvisors.com

The conclusion:

A steepening yield curve is good for gold. It's even better for gold miners because the cost of extracting the stuff out of the ground goes down during economic contractions (making the miners more profitable).