The sell off in Gold could be a buying opportunity in stocks that have run up recently...
Clearly, there is benefit for the dollar in the selloff but that won't stop the Fed from tightening during 2006. And where oil goes is anybody's guess...but down big doesn't seem to be in the cards...
This notion that the Fed can "save the world" simply by raising rates FOREVER! is a bit odd...I mean AT SOME POINT these rate hikes translate into real economic pain...especially in the housing bubble not to mention in the stock market and corporate planning arena...
The current yada-yada seems to think that higher rates are a cure all for what ails the US economy...and for a month or two that could be true.
But then..sooner or later..will kick in and that's when the real trouble starts...and indeed, it's starting already, just under the surface for those who can see it.
