Buy gold sell REITs: this can be new technique in the market place
Joe Weinman
Feb. 18, 2007

The gold is showing bullish sign as solar weakens and tends to go sown sharply. Investors that are planning on capitalizing the problems in real estate sector and mortgage banks are planning to buy gold and sell the Real Estate Investment Trusts (REITs).

Given the debt in real estate sector, even if inflation is intact, the Gold will outperform the REITs. The REITs most likely crash or fall apart in the next several years. At the same time the Gold is poised to rise for the next several months.

The trick in this strategy is that you must know when gold and REITs will start moving in tandem. That will happen in future when deflation is well established. The stagflation at this time is slowly getting converted into deflation. The deflation will take time to fully exert its ugly will on the asset classes including gold and real estate. When that happens both gold and REITs will collapse together.

However, for now, gold will move up and REITs will at some point crash. When REITs crash, gold will skyrocket testing old highs. After that, gold will also enter a bull market.

Dow 20,000 and 5000 – which one first?
Sam Adelton
People losing their jobs have lived on their severance packages, 401(K) and finally borrowed against their home equity. They have started their own business to make sure their future is not affected. Small businesses need nurturing before ....
READ MORE>>

Buy gold sell REITs: this can be new technique in the market place
Joe Weinman
The trick in this strategy is that you must know when gold and REITs will start moving in tandem. That will happen in the future when deflation is well established. The stagflation at this time is slowly getting converted into deflation.
READ MORE>>

Another sign of danger in real estate – some of the REITs showing signs of final bubble burst after 500% increase in seven years
Fred Day
The REIT indices are showing signs of extreme bullish sentiment. That is dangerous for the REIT market. With mortgage delinquency, defaults and real estate foreclosures skyrocketing, REITs are in trouble.
READ MORE>>

Stocks and bonds to move up and down for the next several months on Fed’s interest rate outlook
Sam Adelton
The economies may have finally fooled the Fed, ECB, and other central banks. Every central bank is now thinking in terms of containing inflation. The inflation on the surface is actually deep deflation inside.
READ MORE>>

Copper and Steel is acting as the world leading economic indicators – over capacity and supply exceeding demand points to deflation and economic downturn
Peter Oberois
For the last six years copper and steel prices were acting as the leading economic indicators of the world. The recent slump in price from last years high is significant. It shows the world economies are in trouble.
READ MORE>>

A collapse in banking segments is eminent – the effect on the economy, stocks, bonds, dollar, and gold
Peter Oberois
The meltdown in the financial system can cause massive dislocation in employment. The international trade will come to a halt. The dollar will temporarily collapse, as international players stop capital inflow in dollars.
READ MORE>>

Can GM make good with Chrysler?
Bernie Snyder
Some believe GM’s move on acquiring Chrysler is just over ambitious. But it may be the best chance for GM. One thing GM does not want is for Chrysler to go into hands of Toyota or other Japanese or Chinese entities.
READ MORE>>

MORE ARTICLES >>