Strength in US Service sector growth and weakness in Manufacturing - bullish for dollar and bearish for gold, oil and other metals
Sam Adelton
Dec. 6, 2006

The gold market may have seen its best. The metals may also have seen their best. It was evident from the recent data that showed that while US Manufacturing slumped, the service sector had a very soft landing and is actually expanding handsomely across the board.

In the middle of the big gold bubble and all gloom and doom about the dollar, the US currency is actually poised to make a historic move upwards. The weakness in manufacturing will cause the metals and energy sector slump. US will export more in the service sector. The world will be more service oriented. A structural reorientation will cause sever recessions all over the world especially in India, China and some other developing countries that depend on exports to US. However, the American economy will be far better than the rest of the world. US will get into a deep recession but that will be nothing compared to that in Asia, Euro Zone and especially the developing world.

Iraq problem will have a political solution fast. US budget deficit and trade deficit will shrink like never before. The gold will retest the $400 an ounce. The oil will back down to $40 a barrel. The stock market worldwide will suffer one of the most horrific bear markets in the next five to seven years.

Strength in US Service sector growth and weakness in Manufacturing - bullish for dollar and bearish for gold, oil and other metals
Sam Adelton
Iraq problem will have a political solution fast. US budget deficit and trade deficit will shrink like never before. The gold will retest the $400 an ounce. The oil will back down to $40 a barrel.
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Richest 2% of adults in the world own more than half of global household wealth : World Institute for Development Economics Research of the United Nations University
Media Release
The richest 2% of adults in the world own more than half of global household wealth according to a path-breaking study released today by the Helsinki-based World Institute for Development Economics Research of the United Nations University (UNU WIDER).
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Another sign of bullish US Dolllar - Australia's economy grew at its slowest pace in three years as business spending dropped
Fred Day
Australia is suffering the worst drought and a slow growth due to slow business spending. The Aussie dollar will take a beating because of the lower growth and hence lower prospects of rates in Australia. It is bullish for dollar index.
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The bond market acting like late 2000, Fed is in the mood of denial and dollar ready to explode while stocks enter the massive bear market
Peter Oberois
The stubborn Fed will make the dollar rally as US economy though weak start faring far better than the rest of the world.
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US stock market ahead of US Dollar market by two years – extremely bullish for dollar and bearish for gold
Fred Day
If you take the monthly long-term charts in the last twenty years of US Stock market and US Dollar, you can see an interesting time lag. The dollar has done exactly what stock market has done but two years later.
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Early signs of depression and stock market collapse - a surge in mortgage delinquencies in the past few months
Peter Oberois
But this is exactly what happened in 1929. Interest only loans were all on a sudden common norms during 1926 to 1929. Like hedge funds today, the stock market was not regulated.
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