I don't know, Eric, but what about the old adage: 'When interest rates are high, stocks will die'? Plus, as long as people perceive bonds to be a safe haven and as long as the banks are able to get paper at the discount window at .25% and then deposit it at even a paltry 3% plus, why wouldn't they? 100 billion at 3% is; let's see.... So until there is political will to change the fed's game, the bond will be strong, I think. Gold of course will trump as the ultimate currency. So should gold companies. Of course it should be noted that it doesn't take that much digital money to supress the gold indexes, especially the juniors.
Eddie,
I understand your reasoning, but what I am saying is that that reasoning cannot be uniformly applied across all time periods. The history of capital flows, which can be studied in detail, supports the reasoning I have suggested. Capital flows rather than economic activity dominated the Great Depression, yet many at the time, similar to today, were confused by them. Let me just say that this will not be a repeat of the 1930’s.
As for money controlling everything - gold, gold stocks, etc. I will only say that centralize control, regardless of the ruling structure, technology, and time period, cannot change the secular market trends. Public perception towards centralized control or dominance over markets tends to remain steed fast right up to the point where the obvious can no longer be denied.
Time will prove this point.
Bear in mind, I only suggest these ideas for consideration.
Thanks for the constructive input.
Regards,
Eric
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