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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (29489)2/14/2008 10:29:22 PM
From: carranza2  Read Replies (4) | Respond to of 217573
 
I was stunned. A brilliant insight but so obvious in hindsight.

Here it is for everyone's edification:

jessescrossroadscafe.blogspot.com



To: TobagoJack who wrote (29489)2/15/2008 1:35:25 AM
From: Night Trader  Read Replies (1) | Respond to of 217573
 
"Give me four parameters and I will draw you an elephant. Give me five and I will make it wag its tail."

The perceived real rate of return on capital markets (bond and stock) are enough to model the long term price of gold. Remember we've had a bear market in valuation (if not price) in the main US stock indexes since 2000. Lower PE = lower return expected.