when all asset classes soar
i guess it is something worth repeating and trying to understand further.
what is the significance of the prices of currency (dollar), equity, land, gold, metal, and even some agricultural commidities - rising or soaring - all at once. shouldnt there be a negative correlation between some of these asset classes. i cant undertand nor have i come across a meaniful explanation for such a movement. it will be interesting to see the long term outcome of such movement - whether any asset class with correct strongly or such a run will continue forever!
what is the significance of the prices of currency (dollar), equity, land, gold, metal, and even some agricultural commidities - rising or soaring - all at once. shouldnt there be a negative correlation between some of these asset classes. i cant undertand nor have i come across a meaniful explanation for such a movement. it will be interesting to see the long term outcome of such movement - whether any asset class with correct strongly or such a run will continue forever!
posted by tvm at 2:23 PM
4 Comments:
yeah, there shd be some negative correlation (unless someone is minting a lot of money and pumping that into the market)
scary thought..eh?
everything's moving higher..equity,gold,real estate
without showing any signs of negative correlation.it just must mean that mr greenspan and his tribe of central bankers are revving up their printing presses..
dollar going up is an optical phenomenon,the CPI data released by BLS is flawed -it is ex-energy and ex-food..can you believe it!
dsylexic desi
ya,
pretty scary. hope this unprecented prosperity for mankind - or more correctly least some parts of it holds.
i am actually rather hazy of economics and dont know about BLS.
thanks
asia will manage to hold on to some of the prosperity.but the west will see a definite lowering of standard of life. there is a deflation comin.
read up marc faber and bob prechter.
the so called extended 70 year old boom since 1930 has led conventional economists to believe that business cycles are dead..but the kondratieff wave doesnt lie..it has come into existence since the first central bank came into being 300 years.perhaps that was the seminal mistake of capitalism -the presence of a central bank 'to manipulate' the economic activities of mankind.
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