Quote:
Originally Posted by Zyber
smells like a hyped bubble
|
Agreed. It looks like a top here -- one that could last for 6-12 months.
I still think metals will work higher over the next few years, but then the real gains will be behind us.
The FED is fighting hard to keep the economy from slipping back into deflation. If they are successful, maybe we maintain mild inflationary pressure in the near future. That will be a huge success.
BUT, talks of hyperinflation (a la Zimbabwee style) are wild, unrealistic speculations. A cursory look at the US Bond market is all that is needed to show that. So is a peek at the US Dollar Index which between June 2000 and April 2008 fell from 129 to 75. Since 2008 it has a range of 93 (right after the credit crisis) and 75 and is currently trading at 79.50.
IOW, a multi trillion dollar market made up of the largest and most sophisticated investors in the world are still willing to loan -- in US Dollars -- the US Gov't 30 year money at less than 3%. Does that correspond to an anticipation of dollar collapse and massive inflation??
You have to ask yourself if keyboard warriors and conspiracy theorists citing dollar collapse are better informed than the currency / bond market participants.
