ajtj99's Market Pulse

[chainik]

Hussman's timing of gold has been very good (IMO much better than his timing of general market), and it's nice to know that he is long. I think his max position was 20%, and 15% is pretty close.

I don't want to get into inflation/deflation debate - I am sick of it :) - but IMO I and Hussman are saying exactly the same.

Basically,
Recession --> monetary stimulation (rate cuts) --> increase in money supply --> higher POG.

<he thinks recessions cause increased inflation>

Here by "inflation" Hussman means increase in money supply (which is positive for gold). At the same time, prices may drop if money velocity falls.