Trade the Cycles: The Shanghai SSE Composite Index Tanks A Lot!

Thursday, April 03, 2008

The Shanghai SSE Composite Index tanks a lot!, see http://finance.yahoo.com/q/bc?s=000001.SS&t=1y&l=off&z=l&q=c&c=, down nearly 50% the past six months, which obviously signals major DEFLATION. Buh bye gold Nazis! Game over!

The US catches a cold (or worse) and China gets the Flu (or worse).

.......http://www.JoeFROCKS.com/ .

Labels: Gold

Joe you lack the basic understanding of the term "inflation"

The following from Steve Saville:

"There is certainly a chance that the inflation rate (the rate of increase in the BROAD money supply) will slow over the coming months, but if/when that happens it will be a market-driven, not a Fed-driven, occurrence. Moreover, the Fed can be relied upon to fight any substantial slowdown in the inflation rate and to ultimately win such a fight. There are a lot of things the Fed cannot do, but the one thing it can always do is increase the supply of money."

By Anonymous, at 6:06 AM
Market driven is exactly what I'm saying. The dramatic worldwide economic and stock market downcycle is obviously deflationary.

The economic upcycle from 2002-early 2006, fueled by skyrocketing real estate and very easy mortgage and retail credit (poor lending practices), was inflationary. The current tight lending environment/real estate bust is obviously deflationary.

By Joe Ferrazzano, at 7:23 AM
"Moreover, the Fed can be relied upon to fight any substantial slowdown in the inflation rate and to ultimately win such a fight."

Ultimately win, but, there will be deflation for about 18 months, creating a commodities Cyclical Bear Market.

By Joe Ferrazzano, at 7:25 AM

Trade the Cycles