This is NOT advice… This is just a PREDICTION for discussion purposes only…
Okay, the global interest rates basically confirms that a global recession is upon us. This is the BEST thing that can happen to the USA. That means that the risk of inflation is MINIMAL as their dollar will weaken which means ours will strengthen in relativity. That means that the dollar is going UP. This also has an impact on GOLD as it usually moves the opposite direction? And OIL? Let’s face it, it’s getting attractive again, but global demand will slow, we will pass some energy laws soon to scare the Saudis to lower their price and the higher dollar will buy more for the money. So again, right now, I say (over the next 6 months)…
Dude, you think the risk of inflation is minimal??? You have lost your mind.
Have you seen how much money the fed is printing and injecting into the economy?
lol
You can’t ignore the fact that the strength of the dollar is relative to other nations. Our dollar is weak against other countries. What do you think will happen when a “global recession” starts? Everyone else’s dollar will grow weaker making ours stronger. Think about it…
Global supply will increase as global demand is lower (remember, the entire world will go into this recession with us).
Inflation occurs when there is a surplus of money, which there will not be for quite some time… They will lower the rates as low as they can go and then as the surplus starts to show (aka inflation risk) they will slowly increase rates keeping inflation in check…
But, look around your neighborhood. Everyone around you just lost 50% of their retirement money and can’t borrow anything else. Just because the feds are “printing money” doesn’t mean that it will end up in consumer hands thus propping up the consumer price index. Nobody will by buying **** for 2 years therefore no inflation will occur.
OPEC stated this week that it plans to restrict supply…
I’m not quite sure I understand your logic in thinking other countries’ inflation will outpace ours and therefore help us. Can you explain further?
Luke 8:22-25
I didn't say "outpace". I'm just saying that our market was the first one to price in a recession and an economic downturn. When you put our dollar against "stronger" economies, then it is relatively week. What determines the value of our dollar? It's relative to the value of other currencies. As time goes on, other markets will start to fall when they realize the problems at their home too. The CDS issue is a global calamity. Thus, this will push up our dollar. Thus, you will see a flight from gold back into the US dollar.
I’m a big Boone Pickens fan. He seems to always be ahead of the game, both in calling for oil to go above $100 when it was in the $60 range, and last month he predicted that it would fall.
He says that Opec will support oil at $60/barrel, and he didn’t think it would fall below that. He expected a long term range between $60-80, providing some catastrophic event doesn’t occur.
When asked if he was still long on oil, he said that he would always be long on oil, since there is a limited amount of quality oil, and since offshore drilling is some time away.
And turn on your tv folks… Oil is falling today. It’s almost down to $78 a barrel. I warned you about it at $120. Gold had a nice drop today as well…
“Gold had a nice drop today”. Sure, but look at physical gold demand. Or try and buy some bullion right now. How about the rumored COMEX default on gold? The gold/dollar relationship is much more complex than CNBC will ever tell you.
Sure, I’ll guess that we will just have to see, but you have to agree that it’s been forming quite the bubble recently. After this horrible week for the market, there will be some more bargain shopping and people have to sell something else to get those deals.