Divergence: gold and bonds

Started by pkamm, 09/29/2010 03:54AM
Posted 09/29/2010 03:54AM Opening Post
Gold, bonds and stocks rallying, all at the same time. Not normal. Clearly the gold market believes inflation is upon us, the bond market believes deflation is upon us, the stock believes neither -- which is right? grin
Posted 09/29/2010 04:23AM #1
Paul Kammueller said:

Gold, bonds and stocks rallying, all at the same time. Not normal. Clearly the gold market believes inflation is upon us, the bond market believes deflation is upon us, the stock believes neither -- which is right? grin
Nobody's right because we live in a world dominated by a global economy and what's right for one city, state or country doesn't equate with the norm that we used to know.
I listened to the KNX radio business news hour at the end of August and the mutual funds adviser on the show essentially stated September was going to be a significant loss in the stock market and we're now on the verge of the best September on record since ?
It ain't like it used to be...
Posted 09/29/2010 04:26AM #2
Paul Kammueller said:

Gold, bonds and stocks rallying, all at the same time. Not normal. Clearly the gold market believes inflation is upon us, the bond market believes deflation is upon us, the stock believes neither -- which is right? grin

If everything costs more dollars, wouldn't that imply that dollars are worth less than they were in the past?

I doubled my money on platinum in the last 18 months, but was too conservative to put much money in platinum so its not a big freaking deal. Assuming the platinum is worth about the same as it was 18 months ago, then one might conclude that the dollars are worth half of what they were back then?