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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: da_cheif™ who wrote (67501)	9/23/2011 3:25:32 PM
From: Winfastorlose	4 Recommendations Read Replies (1) \| Respond to of 207338

So now inflation will send oil and gold plummeting? You are losing me Cheif. Why do you think that would happen?

To: da_cheif™ who wrote (67501)	9/24/2011 1:57:39 AM
From: aka_Jimbo	Read Replies (2) \| Respond to of 207338

I think of it like this... It's about the velocity of money; ie, getting money to move from where it is stuck. Bonds crashing... the opportunity cost of being long a financial instrument with limited upside is insane. Money will get 'unstuck' from bonds. Gold not going up anymore .... Opportunity cost of keeping an unproductive asset like gold versus an asset that can produce value. Money will get 'unstuck' from gold. Cash ... Opportunity cost of holding cash as rates rise will be huge. Money will get 'unstuck' from all those 'fiat' currencies and move into productive assets. Where does that 'unstuck' money go? ..... Into productive assets, ie equities, basic economic commodities, farmland, railroads, etc. That further will make companies 'unstuck' cash into productive assets, like other equities and things that produce more value for them like plant, equipment, and human capital. This increasing velocity of money would be akin to looking at not just the velocity of money, but rather the acceleration of money...... ie "inflation". Acceleration, by definition, is the rate of increase of velocity. With inflation, people and companies will be buying stuff like crazy. In my mind, it starts with interest rates going UP, which isn't the common paradigm. CNBC will spend months with confusion over why interest rates going up could happen while stocks go up and gold goes down. SHORT BONDS