Narrowing US trade deficit – good for dollar bad for stocks and gold
Bernie Snyder
Dec. 12, 2006

The U.S. trade deficit narrowed in October to $58.87 billion, reaching its lowest level in nearly five years as oil prices kept falling and exports managed a modest gain. Dollar stabilized and then moved up. Stocks went down. That is the trend for 2007-2010.

The narrowing U.S. trade deficit and budget deficit in conjunction with deflation in the economy will be the root cause for the rise of dollar and fall in stocks and gold prices.

The Dow industrials fell more than 50 points on the news ahead of the Fed's decision on interest rates. Alcoa dropped nearly 2% amid an analyst downgrade and a profit warning from Nucor.

The narrowing of trade deficit is coming from a rise in exports and fall in imports as US economy goes into deep recession under the influence of first stagflation and then deep deflation. The net result is that the stocks will collapse with gold and dollar will rise to heights never seen before.

Narrowing US trade deficit – good for dollar bad for stocks and gold
Bernie Snyder
The net result is that the stocks will collapse with gold and dollar will rise to heights never seen before.
READ MORE>>

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