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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (8628)	8/13/2010 9:58:10 AM
From: robert b furman	1 Recommendation Read Replies (1) \| Respond to of 218768

HEHE, Me too. I always thought Gold was a fighter and protector of inflation. All the talk now is deflation. Actually I believe our consumer has been HOG tied to overpriced housing.Housing that was financed for 15 or 30 years. Autos sales have gone to depression levels for 2-3 years.Auto are financed for 5-6 years.So we are crawling out of that overpriced funk as used car values have increased for almost 2 years now.New auto production has been brought down to match demand. Housing does not wear out as quick and will take longer. When it does recover most will be surprised at how expensive it will be to build a new home. Our American consumer is tapped,and the precommittment to an inflated house payment makes all other expenditures harder to do and afford. IT is the new normal,until demand equals supply,and then prices will recover quite quickly. I think that is what it will take to see Gold become sought after as an inflation fighter. In between the talk of currency debasement and other fear mongering no doubt has a place. But Gold does not pay a dividend and treasury rates (10 year)and headed to below 2.5. The day will come where people will get sick or parking their money in banks for nothing - especially when food inflation costs them more. Good equities with operations in emerging markets that pay dividends will become preferred instruments of modest wealth growth. Real Estate used to hold that position - its been secularly over priced and the bubbles been deflated - It will take years. I'm just not excited about Gold and parking my money in something that doesn't pay - other than appreciation. Appreciation in a deflationary environment is appreciation in a headwind. JMHO Bob