re: Opinions on market direction considering economy, margin debt, & valuation

Because this time I don't see deflation necessarily increasing purchasing power. What these experts are predicting and calling deflation isn't deflation as it is defined. Based on the articles that came out the last several days. Some articles have been coming out previously, but recently a lot of deflation articles started popping up in a greater number.

It would have an opposite effect. I think it already has the last couple of trading days. I wouldn't call it a trend, but there was a fairly significant jump intraday gold Monday I think. By their definition, they're not just predicting deflation, but already calling it that.

There are some economists that argue holding gold during deflationary periods (because gold and cash are unhinged) would increase operational wealth. It's a long winded argument, and they, like every other expert pushing their thesis pick and choose time periods. The most interesting to me is when they talk about holding pm's between 1920-1933, hardly a period of inflation. And an interesting end result for those that held some pm's in their portfolios. Of course we were on the gold standard then.