Jim,
The basis for the WSJ's headline and view is that the markets are
going down because interest rates are being ratched up by the world's
central banks. And the central banks are doing that because growth
is so strong. To quote:
"Many economists now think the broad reversal in the price of stocks,
bonds and commodities like gold and silver is less a warning signal
of an economic downturn than a consequence of the ratcheting up of
interest rates by the world's central banks. Indeed, the central
bankers' concern is the reverse of a slowdown: that growth may get
too hot and could contribute to an upward spiral of prices -- or
inflation."
Doesn't make sense, does it? If the central banks are correct, then
it is time to BUY gold and the rest. Or am I not looking beyond
enough valleys and peaks? Should we SELL, because there is a boom?
Or BUY because because there is a boom?
Gene
On Jun 14, 2006, at 8:45 AM, Jim Devine wrote:
why do they say so??
On 6/14/06, Eugene Coyle wrote:
Headline on page 1 of WSJ 7/14/06
"Tumbling Markets May Be Reflectioon of Strong Growth"
