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Dick Webb wrote:
> The morgan stanley cyclical index has just taken off
> to the upside. The Paper companies and gold stocks are
> going up. There is a theory that the far east is
> starting to recover and they are now no longer dumping
> commodities on the market. If this is the case and
> there is a shift in progress ...what typically occurs
> in one ...three and five years ??
>
>
Hello from Hong Kong. You mean reflation in Asia - IMHO this could be
wrong i.e. too early. It is one of the symptoms of the top of a primary
B wave, in Elliott terms. Also, the shift of funds out of growth/techs
and into cyclicals and value stocks IMHO again could be temporary.
Yields are too poor. My guess would be money market funds and bonds will
be the next destination for capital flows. The US economy will continue
to import deflation for this year - and that will also impact on
earnings. Regards.
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