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There is no inflation threat looming as the news portrays when the stock
market goes down a little. There has been no correlation. The real
threat is deflation. When the stock market goes down, not if but when,
say 30% - 50%, there will be the choices of lessing credit or increasing
it. Then we can become concerned about inflation or deflation
scenarios.
One point, never have any markets historically to my knowledge
continued to rise without a major correction. The Golden 40's, 50's, to
1966 were followed by 25% to 50% retracements into 1982. That means we
will see the Dow crash when this phase completes. That's the million
dollar question though. When???
For a broad, you might say liberal arts education, subcribe to the
Foundation for the Study of Cycles. The prices of steel (pig iron) can
be traced for hundreds of years and observed. All sorts of human
activity and natural phenomenon have been studied. Data has been
collected, manipulated, charted and statistically interpeted.
Tin Mervin Yeung wrote:
>
> And nowadays, people keep talking about low inflation;
> I wonder if this is relevant. If anyone has time, s/he can check the
> wholesale price and the retail price in 1920s. There was no inflation;
> price was stable.
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