Paulie
Diamond Member
- May 19, 2007
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Call me a pessimist but I think we will see 6000 before we see 10000, because of what xsited said pretty much, people are going to make some profits and bail when the government cheese ends and then we will also see some kick ass inflation that will exceed any gains for the next several years.
The inflation would most likely spike equities and commodities, as people are going to want somewhere to put all the extra cash. What we MAY be seeing is what's referred to as a "reflation trade". The government is throwing trillions of dollars at a problem, which is going to cause mass increases in the money supply. The monetary base is at unprecedented levels as we speak, so when that money hits the streets it's going to be looking for a home.
That home is most likely going to consist of another bubble, including inflated equities prices. The stock market stands to gain a lot once again, but I certainly wouldn't ignore precious metals.