It appears PeterB and I agree on quite a few things. I am not sure if you are a trader or not but you certainly seem to have a good grasp on several things related to the markets.
My research on the dollar shows that it should move higher for several years. There is a 16 yr cycle low that was due earlier this year that hit right on schedule, and now we are moving up according to what should be happening. If this pattern holds true we should have an 8 yr run in the Dollar upward. I especially like this pattern because it is oppposite of what the majority of people think, hence likely to be valid. I also like what it forecasts for Gold, much lower prices. I shorted Gold last week in line with what I posted here that I was looking to sell the short term rally. I already took the money because it was so much so fast I could not help myself. There should be selling opportunities in Gold and Buys in the Dollar for quite some time.
What the world waits for will never happen, and I think this is true for both of these markets at this juncture. 8 years up seems like alot, but until this pattern which is working perfectly in it’s early stages falters, that is going to be my view. I am really hoping for some short term dollar weakness to get aggressively long.
I really have no idea about the economics of these views, economists are notoriously poor traders. However, if we are Japan from the 80’s ( where I think we are ) this would all make sense on an econmics level.
I did a comprehensive study of Gold and how it reacted historically to stock market declines in my newsletter many months ago, which conclusively shows no relationship either way between GOLD and stock market declines. It is not a safe haven, do not get suckered into that story, it is a ruse to sell coins. It’s relationship is with inflation not stock prices.
For the record I am not hawking the newsletter, I do not do it anymore, I got tired of the hassle of writing it.