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Bill
While I agree with the conclusion I believe the Fed was raising interest
rates to fight inflation not cutting them. But now they are cutting them
which makes utilities a good investment. Look at the recent rise in the
Dow Jones Utility average. What I don't understand is why precious
metals are rising in a deflationary environment if they are a hedge
against inflation, which I also question. Is this just a rush to
something that makes us feel warm and comfy or are we really going to
see a rise in precious metals? Good question.
John
Bill Saxon wrote:
>
> 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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> > unsubscribe fasttrack <email>
> > in the body of the message, substituting your actual
> > email address for <email>
>
> ------------------------------------------------------------------------
> [Image]
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