Massive Commodity Deflation Began in Mid 2008, see CRB Weekly View chart two at http://stockcharts.com/charts/gallery.html?s=$crb. Stocks and real estate began to massively deflate in mid 2007 (Russell 2000/RUT) to late 2007 (SPX peaked on 10-11-07 at 1576.09).
The powers that be worldwide are trying to inflate the world out of a massive deflationary economic bust/downcycle. The problem now is massive DEFLATION, though there will occasionally be mini inflationary booms within the massive bust, such as from 3-6-09 to 4-26-10 for SPX (SPX appears to have peaked/Major Cycle High at 1219.80). Two of the best investments and trading vehicles are gold (inflation protection, probably heading much lower the next year or two; I love gold at the RIGHT price) and US T Bonds (deflation protection).
No comments:
Post a Comment