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Strategies & Market Trends : Humble1 and Swing Trading Friends -- Ignore unavailable to you. Want to Upgrade?

To: cmg who wrote (8687)	8/13/2012 12:35:38 PM
From: zman69	Read Replies (1) \| Respond to of 41471

CMG, One final point. Your argument against government leaning against the private sector deleveraging via stimulus is that it might create inflation. First off Japan is a real life case study that shows that massive government defecit spending as a % of GDP has not caused one iota of inflation nor has it resulted in an appearance of the imaginary bond vigilantes. But let's suppose that govt. spending DID result in an increase in inflation rates. That is the best possible thing that could happen right now. Any student of the Long Cycle (K-wave) knows that early inflation (K-wave Spring) is bullish (for example 1940's), while it is late inflation (K-wave Summer) that is bearish (for example 1970's). Same goes for deflation, that early deflation (K-wave Autumn) is bullish (for example 1980's) while late deflation (K-wave Winter) is bearish (for example 2000-20??). So as we try to exit K-wave Winter, the one thing we need most right now if we want to make money being long the stock market is INFLATION... Therefore, the Austerity proponents and deficit/inflation hawks (or as Krugman calls them the "Pain Caucus") are the most dangerous people to have in policy making positions of power right now IMHO. Now... enough of the policy debates. Let's get back to focusing on TA and market sentiment :)