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Feb 122012

Chart of the Day

Barrons does some ruler-based analysis, suggesting that Dow 15,000 by 2014 is not unreasonable:


  • Anonymous

    So, forgive my learning here…., but if the dollar loses value due to inflation, stocks rise, right?
    I just looked up the chart on Weimar Germany hyperinflationary period and it looks like the market continued upward due to speculation and possibly tax avoidance. Does this sound right?
    The present markets seem to be a bit in question with so many putting their efforts in gold.
    Do you think we could have a similar rise in the market due to the continued money printing?
    Thanks,
    D.

  • Anonymous

    Quite right – all things equal, anything priced in dollars would rise if the value of the dollar fell. The expectation (not only the realization) of monetary expansion can cause the dollar to fall and stocks to rally.