View Full Version : Futures and Inflation
12-13-2007, 08:35 AM
Just a question for the guru's here. What causes commodity and hard asset prices to decline when there has been a rate cut and signs of inflation? What is keeping gold and oil low when the news is worse than it was a few months ago?
Inflation is not uniform. When new money is introduced into the economy, it comes in clumps.
Looking at a long-term view, all asset prices go up at the inflation rate. In the short-term, there are bubbles inflating and popping.
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