Gold, oil and stocks all affected by deflation – massive worldwide economic downturn
Sam Adelton
Mar. 5, 2007

The Asian stocks plunged. The rest of the world stock markets struggled. The collapse started in Japan. But stabilized somewhat in the United States. The crash was averted for today and perhaps there will be no crash in the world stock markets.

Interestingly, bond yield rose as stocks continued to plunge. The action interestingly matched the overall scenario the analytics and quantitative models have been predicting.

As deflation drags the market down, the Asian economies will suffer much more than America and Euro Zone. The sectors that depend on exporting to America will be depressed first. The bond market will rally and then the long rates will fail to come down any more due to huge budget deficit.

Gold, oil and stocks, all are affected by deflation. A massive worldwide economic downturn is in the process after the bubble of 2006 bursts.

If and when Dow, S&P and Nasdaq opens limit down for several days – how can you protect yourself?
Sam Adelton
When limit down occurs, there may not be any official bids. That is dangerous because the next day it can go again limit down. If markets do not trade, you will not be able to exit the market.
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The current sharp rise in yen and inverse relationship with stocks are further conformation of deflation driven route of worldwide stock markets
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The world wide trend in the stock market has changed all on a sudden. The deflation and bubble bursts are imminent in the whole world especially in Asia. Asian stocks are registering biggest decline ever.
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After a short bounce back the stock market is headed for free falls in the middle of deflation and underemployment
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The deflation is the economy is rising. The underemployment is changing to unemployment. The deflation in small business is severe. The large businesses are also facing the danger of deflation.
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Gold, oil and stocks all affected by deflation – massive worldwide economic downturn
Sam Adelton
The Asian stocks plunged. The rest of the world stock markets struggled.
READ MORE>>

Stock markets worldwide ready to crash after ‘shoulder head shoulder’ formations - how far can Dow drop in a day?
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Simply put, investors will get an opportunity to get out of stocks may be after initial 25% drop in the market and after 5 trading days.
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