RSAAKS

Stocks Will Fall 37% or Gold Will Rally 60%

"throughout the 20th century, on average 5.4 ounces of gold would buy one unit of the DJIA.

Today, gold trades at $980. The DJIA trades at 8,500. This puts the ratio of gold to stocks at 8.6."

What if Gold goes to 2000 and Dow to 12,000?? With impending inflation, I think that is more likley. In other words both go up. Possible?

Three Ways to Take Profit in Gold as Inflation Props Up Prices

Fed has stated in no uncertain terms that there will be NO DEFLATION. Instead, we will create INFLATION. They own the printing press and they are using it. So go with the flow, and buy gold, oil, commodities,...like Doug Kass says, buy STUFF, stuff that can drop on your foot and hurt it.

Does Friday's CPI Report Mark an Inflection Point?

Looks like we are all set for the start of stagflation, rising commodity prices, rising inflation, economies struggling to expand and likely shrinking. We saw this before in the early 80's, would not be a surprise now.

Wednesday Outlook: Commodities, Emerging Markets

I enjoy David's posts, one of my favourites on SA. Especially because it is loaded with facts in a very concise format. Thank you for the posts David

Gold as a Truly Last Resort

Is it possible that even as M increases, V decreases and keeps the economy relatively in status quo. That is quite possible since aging populations (with aging of the boomers into retirement), spending habits and overall spending go way down keeping inflation in check even though interest rates are low. It has been going on in Japan for 15 years, why not here?

The Secular Bear Market Continues

Real question then becomes-will gold go down or dow go up to bring the two in balance. My guess- Eventually Dow goes much higher to adjust for future inflated prices of stocks and gold goes up, but not as much in relative terms-overall dollar buys less of each.

Letting the Reinflation Genie Out of the Bottle

For a economy-idiot like me, can someone explain why having some 20-30% inflation of prices and wages be so dreadful. If wages magically went up by, say 25%, most of the home loans and credit card loans will suddnly become payable by the consumers. And then of course prices will also go up by 25-30%, and all that has to happen is decreased future consumption and we could be OK? So in future even with 25% higher incomes, we all consume 20% less food, 20% fewer cars and fuel etc, that is the new reality any way, can the wiser crowd shed some light on inflation for us?

Survival of the Longest

The market is not going down because of herd mentality of the baby boomers, It is the herd mentality of hedge funds and mutual funds that is causing this melt down. Unless the hedge funds are regulated like mutual funds, and there is some transparency of what the hedge funds are doing, this market is not coming back/ Individuals will surely be out at some point, whether now or in a year, if down turn persists. Going forward, funds will simply be selling to each other and will have very little individual participation directly or via funds.

Why I Got Gold Wrong

Can somebody explain how you can have deflation and lower gold prices when the only commodity being produced in large amounts is paper currency? Is there any historical precedence?