Archive for April, 2008

Inflation Pinch – Gold Drops In Spite of Facts – Buy!

Tuesday, April 1st, 2008

Gold dropped today to below $900 per oz. It isn’t based upon the fundamentals but upon the view that the dollar bear market has ended. The hedge funds are selling gold/ag/oil to buy dollar financial stocks. This is causing a pull back in the hard asset stocks and a move up (probably temporary in my opinion) in the financials.

This graph, showing year-over-year prices for things consumers buy, says that inflation is here. If you don’t own any of the hard asset stocks, then you are getting a gift here in the form of this short-term correction. We are buyers and you should be, too.

Mark

Thanks to Newsday for the graphic:

Source:
What’s putting the pinch on consumers?
KEIKO MORRIS
Newsday, March 31, 2008
http://www.newsday.com/business/ny-bzecon0331x,0,3085764.story

Graphic
http://www.newsday.com/business/ny-lifood0331pg,0,4548295.photogallery