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Still more grist for the mill. To me this is scary. Any comments?
And the dollar is going to H..*
Henry T Lee wrote:
> Hi -
> One of my friend is a really bright econo type
> from the London School of Eco who just called
> me today about his thoughts on the world
> economy. Here what he said in a nutshell.
>
> The world's economies are going into a deflationary
> recession. Prices for commodities have been
> dropping for a while now. He thinks that the Fed
> will try to "inflate" the economies to fight a deflationary
> recession. One way to do that is to cut interest rates
> which is what the Feds are currently doing and will
> probably continue to do in the future.
>
> He believes that the recent rise in the gold prices
> reflex this change in the Fed's policy. And that
> precious metals will be a good investment now.
> He also thinks that the difference between now
> and the last ten years is that we are entering
> a deflationary recession whereas from 1980 to
> now - the Feds were cutting interest rates to
> fight the inflationary fears from the 1970's.
>
> So with that in mind - I checked the most recent
> performance of the following mutual fund types:
> 1. Precious metals
> 2. Energy Prices
> 3. Zero bonds
> 4. compared to the DJ-30 and Rydex Ursa fund
>
> So here are the % numbers based on the last
> 15, 30 and 60 trading days
>
> Investment_Type------15days------30days-----60days
> DJ30------------------------- -4 ---------- -10 ---------- -15
> Rydex Ursa fund-------- +5 --------- +9 ----------- +17
>
> Avg (gold funds)---------- +17 --------- +25 --------- +10
> Rydex Prec Metal fund +23 -------- +31 --------- +19
> AmerCent Global gold +22 -------- +34 --------- +17
> Fid Sel Prec Metal------ +21 -------- +32 --------- +13
>
> Avg (zeros bond funds) +6 --------- +8 ----------- +11
> AmerCent2025----------- +11 ------- +15 ---------- +20
> AmerCent2015----------- +6 --------- +9 ----------- +13
>
> Avg (energy funds)----- -3 ---------- -2 ------------ -16
>
> Any thoughts on this are welcome
>
> Yours,
> Henry
>
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