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Currency Crisis…Rising Interest Rates…Crash In Markets?

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  • Sun, Apr 01, 2012 - 12:16am

    #60

    Nichoman

    Status Silver Member (Offline)

    Joined: Nov 01 2008

    Posts: 140

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    Currency Crisis…Rising Interest Rates…Crash In Markets?

Adam:

Questions for Chris.

Looking at Stock Index prices in Greece, and a bit lesser extent Portugal and Spain, there appears to be significant negative correlation or fall to rising Interest Rates there. Just as one would expect based on history with US stocks and interest rates.

1.)  What is Chris’s view of how the stock market would do based on the 3 recent above country cases?  

2.)  If agree to a significant fall, ways to utilize this via investement vehicles other than PM’s like option techniques, or buying the most in demand, necessary commodities (food, oil and so on) from their recent price behavior in these 3 countries to reduce or eliminate loses?  

FWIW…Loose numbers drawn from the 3 above events, plus our past US history extrapolate a 50 percent drop in US is very plausable, if not more.   Of couse statistics is based on the assumptions used, that is, somewhat subjective.

BTW…doesn’t this tie into Biederman’s thoughts on price and liquidity? 

Thanks,

Nichoman