Replies to post #24042 on Fiends In Stocks

[DeepBlue1]

Lots happening this week...

First capital moving to the banks today...

Fed meeting considering dropping interest rates down to 0% or very close...

Jobs report...

LIBOR is flattening out/dropping much slower than it was last week(s)...

Here's something interesting concerning hedge funds...Since they have to report within 2 days now, hedgefunds who know other hedgefunds are in trouble are now TARGETING THEIR HOLDINGS/STOCKS and SHORTING THEM.

Deleveraging is far from over, and Nov 15 is the next big redemtion payback day for those who want out.

Good conversation on CNBC this morning..."When new injected capital FINALLY turns into Liquidity(lent out), inflation will begin to be a factor.

[DeepBlue1]

Just had an interesting thought.... What do you think?

Here it is...

Since Gold is the most commonly thought of precious metal as a hedge against inflation and more so than silver...

Will gold be the first to bounce because...(here it comes)...

Inflation will become a factor when capital now going into the system actually BECOMES LIQUIDITY which is going to happen long before the recession ends, AND...

Silver will follow somewhat later because...it's an industrial commodity and the SECOND MOST COMMONLY thought of hedge against inflation and also will naturally want to revert to the gold/silver ratio mean as well as respond to a newly growing economy as an industrial commodity.

My plan...right now cash is king as the dollar rises. When it begins to roll over and inflation becomes a factor that's when you'll want to move into gold.

Then, after gold has appreciated to what is predicted to be over $1500+++ and the market/economy begins to turn up move that money into silver to capture the gold/silver ratio and the industrial commodity move upward.



If I'm right, you'll be able to parlay your gold gains with silver and do much better overall and in the longer run.

Also, I think the LIBOR RATES will be the best clue as capital becomes liquidity so watch them. They've already begun to move down but have flattened for the moment. However, TODAY the capital is finally being moved to the banks so it's begun.








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[DeepBlue1]

The USD is WAY OVERBOUGHT already, and when it turns over it'll likely be as violently to the downside as it's been to the upside.

That's when inflation and consequently gold/silver will come into play.

It can't be too long off at this point. I'm thinking a matter of a few weeks tops(Nov 15) to a few days as capital moves to the banks and liquidity really hits the street.

[DeepBlue1]

One more thought...

Oil is the key to prices in commodities and cosumer goods. So...

I think the price of oil, when it bottoms and or begins to move up will be ANOTHER HUGE CLUE to the inflation question. Maybe even more than the LIBOR/LIQUIDITY effect, but they're both key clues to the beginning of inflation/end of deflation one way or the other.

The third important clue will be the market and probably the DOW INDUSTRIALS more than any other stocks. Until they stabilize, consumer prices will continue to slide and could cause deflation to persist.

[DeepBlue1]

Finally read the article you posted. LOL

Thankfully it confirms most if not all that I just said and makes me feel even more confident in the scenario that I painted.

One of the best things I've discovered is that by following gold/silver so closely I think we've tapped into the most important factors governing the market in general and gives us an understandable framework and gauges to successfully predict what's going to happen with plenty of great clues to follow in order to stay ahead of the curve.

The only thing that really gets in the way is the manipulation of paper silver and gold which acts as a confounding factor that can be a bit confusing.

But as long as we're aware of that potential I think we still navigate this period just fine and will in the end make some great coin when all is said and done.