Showing posts with label Deflation. Show all posts
Showing posts with label Deflation. Show all posts

Wednesday, May 26, 2010

Is gold the next bubble?- WSJ



I add: Now is NOT the time to buy gold AS A LONG TERM INVESTOR. Gold has done a great job of hedgng against inflationary pressures for a very long time, but, it should fall dramatically due to worldwide massive deflationary pressures, and, simply because it's rapidly approaching the start of a Major Downcycle. Gold appears to be in a final Wave 5 Intermediate Term Upcycle, of the Major Upcycle/Cyclical Bull Market since the $681 Major Cycle Low in October 2008, see Weekly View chart two at http://stockcharts.com/charts/gallery.html?s=$gold.

Saturday, May 8, 2010

Massive Commodity Deflation Began in Mid 2008


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).