Time to Revise Our Gold Expectations [View article]
As long as the dollar is seen as a safe haven, gold will not rebound. However, the moment we can see a light with our economy, foreign money will be drawn out of the dollar and back into stocks and gold. We will then spend much more time refocusing our sights on how we printed our way out of this mess. The dollar will be the bubble of 2009. After a long deep recession, the Fed will find it difficult to raise interest rates as quickly as may be needed to sponge out the excessive liquidity in the new marketplace.
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As long as the dollar is seen as a safe haven, gold will not rebound. However, the moment we can see a light with our economy, foreign money will be drawn out of the dollar and back into stocks and gold. We will then spend much more time refocusing our sights on how we printed our way out of this mess. The dollar will be the bubble of 2009. After a long deep recession, the Fed will find it difficult to raise interest rates as quickly as may be needed to sponge out the excessive liquidity in the new marketplace.
Dec 09 15:21 pm
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