Oct

5

If the last couple of years the DXY and the SP500 rose together, a parallel from the 80s was justifying that the US economy is improving and hence both money and the assets this money can buy can appreciate together.

Usually in the developed markets, say the G-7, a regularity has indeed prevailed that the value of money and assets do not move together.

So during the last couple of years, where indeed all key central banks have been steroid fountains (naah the throwing cash from helicopters is phrase that everyone has forgotten so I will use this one) pumping up their supremacy in dictating markets, there have been countries in Europe where equities went up despite the underlying Euro declining.

So this set of arguments is therefore either contradictory or inconsistent or incoherent.

In trying imagining (forecasting begins with an imagination which is eventually restrained with the aid of studying the statistics of data originating in the past) how this present world will find coherence, I have three questions:

a) Is the more important Money going to be gold for now, the super-currency that will get acknowledged as having this status with the reality cheque now being shoved up on every desk?

b) Can the steroid factories drive value of both Gold and Equities together now, while in the last couple of years DXY and Equities indeed drove together?

c) If Price of Crude is better visualized as anti-money and not money, since the world has to consume it to produce wealth, will it drive along with the prices of equities or against them, hereon?


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