The guru I follow predicted gold to move between 1182 and 1215 for about a week and then go up again. No sooner did I read this prediction then the dollar dropped to 1182. How about the dollar? The prediction there is a further drop, then a recovery then a serious drop.
The Euro has stopped dropping as sovereign debts have been papered over temporarily. The US, however, continues on the destructive path initiated by the FED and Obama and deficits are growing at a very rapid rate. China's rating agency has already downgraded the creditworthiness of the US. Strangely, China is still propping up the Obama regime by further purchases of Treasuries.
The Stock Market continues to be volatile and gives every indication of a drop coming. Guru #1 predicts a restart of the Bull Market, because all equities will be repriced in the cheaper dollar.
Friday, July 16, 2010
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