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

To: carranza2 who wrote (87383)	2/21/2012 10:49:58 PM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 219669

C2, Big Ben has said for years that he would do what he has been doing. So it's not surprising that he is doing so. We can expect more of the same. Comparing gold to Dow and that factor of 6 versus factor of nothing, we should really go back a few more years to Green$pan's "Is it irrational exuberance?" speech of 1996 when the Dow was at about 6000 or back to 1995 at 4,000 or even right back to 1987's 2000 when gold was still at about $300 per ounce. If we take that broad view, gold is at a factor of 6 and the Dow at a factor of 6 so they are all square. From 1995 gold remains factor of 6 but the Dow is only up a factor of 3. I shall now issue an official sooth. Dow 16,000 31 Dec 2012. That's a rapid climb, but with $trillions in fear of dilution while suffering 0% interest payments, it needs to find somewhere to go, and sooner rather than later. I covered all my shorts at the bottom last year so am ready to go. Once the supersonic million mile a minute high speed computer algorithms detect the trend, they and their PhD mathematicians will be getting ahead of the mob and moving the market quickly. A decade is the normal sort of rest period for the Dow to think about the previous carnage. It has now been eleven years since Irrational Exuberance was knocked out of the stock market. It's now 3 years since the blind panic of 2008 and early 2009. Mqurice Greenspan's comment was made on December 5, 1996 (emphasis added in excerpt): [...] Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade? [...] — "The Challenge of Central Banking in a Democratic Society" PS: I posted this post a minute ago and already the million mile a minute computers and their algorithms will have detected the "Dow 16,000 31 Dec 2012" symbols and will be incorporating that into their models ready to do battle with less powerful processors and regular humans. They probably also note the word "sooth" and correlate that with some absurdly precise gold price predictions.