Dollar's bouncing a bit, yet oil remains at record highs. Gold is consolidating, getting ready for its next move. Which way will it go?
Meanwhile, the DJIA has held my major support level at 12,795. Could stocks start to play catch up with other inflating assets? After all, US stocks in general have already been in one GIANT STEALTH BEAR market, losing more than 75% of their value in real terms in the last eight years.
On a separate note, I received a question yesterday about the Great Depression and whether or not I thought the gold standard back then contributed to the depression. My answer: Absolutely! The gold standard prevented Washington from pumping out money and credit. They were handcuffed by the gold standard.
Today, they are no longer tied down by a gold standard. So they are free to create money and credit at will. That does not mean we can't have a depression. It merely means that instead of if it being a deflationary depression, it would be the opposite, an inflationary depression.
Comments?
Posted Tuesday, May 13, 2008 by
Larry Edelson
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Posted by: Roger on Thursday, May 29, 2008
How about the concentrated short positions in Silver? Maybe this might apply in the other materials.
Posted by: Larry on Friday, May 30, 2008
Hi Roger, Great question. Heavy shorts in any market are a short-term bullish sign, in the sense that those shorts could be forced to cover, which would exert upward pressure on the market. But from a longer-term perspective, they can be a bearish sign. So, it really depends on your time frame. -- Larry
Posted by: george on Friday, June 20, 2008
Mr. Edelson: I just checked FXI today and it is at $133.97/unit. Because that is below the 153 price, do you still recommend this for a buy? thanks, george
Posted by: Larry on Monday, June 23, 2008
YES!