Perry1961

As the Dollar Continues to Collapse, Where Will You Put Your Money?

Even Forest Gump would raise rates if inflation became a threat. With oil up 75% ytd,the dollar losing ground,and the economy showing a slight pulse,the Fed is probably thinking higher rates six months from now. Europe may never grow again. Ditto Japan. Their populations are declining,and they don't have the natural resources America is blessed with. Throw in a lower dollar,and perpetual economic malaise is assured.

As the Dollar Continues to Collapse, Where Will You Put Your Money?

I would liken the stimulus spending to a light drizzle after two years of drought. World equity markets dropped 40 or 50 trillion in '07 and '08. Hard assets like housing and real estate lost another 40 or 50 trillion. Quick,decisive action by central banks and world leaders may have averted a depression. We don't know yet. A "declining rate of decline" in economic activity is where we currently stand. As world GDP continues to decline,demand for commodities will continue to shrink.

I'm bullish on the dollar going forward. Of the G7 countries,the US looks to be the first to recover. We can't pull other countries out of their economic malaise without a strong dollar. Central banks will take concerted action if neccessary. Also,the Fed will be draining liquidity and raising rates long before Europe and Japan can afford to do the same.

Yellow Gold vs. Crude Black Gold: Who's Ready to Rally?

Gold will be back near $300 in 18 months. People hoard gold for times like these. Especially Asians.

Invest Now with a Keen Eye and Be Regarded a Genius for Decades

The world can't afford expensive oil at this point. If the price does move higher,demand will just drop further and economies will take even longer to recover. Historically,the time to buy oil is about 3 years after a recession officially ends. And this recession is wider and deeper than most.