Recession may mean short/mid term dip/buying op. in goil?

[blazespinnaker]

(goil = gold/oil ;)

Are the dropping goil markets predicting recession and deflationary risks? Or is this all market manipulation?

As a side note, I find it fascinating that as the economy slows, energy prices are lowering alongside ... almost as if there is a self moderating factor in there.

This sort of thing makes me wonder if perhaps the economy is a lot more finely tuned than we worry about here at iTulip.

However, if housing prices continue to track goil the same way they did on the way up, we may find that a serious risk of deflation will prevail and ka-poom will be upon us (in which case, these will be short term buying opportunities in goil).

But what about that $#W$% market that won't stop going up? You have no idea how that's pissing me off. Well, you probably do if you're an iTuliper...

[DemonD]

Re: Recession may mean short/mid term dip/buying op. in goil?

The most bullish person I've ever heard, Mr. Jim Cramer, told his audience today that oil will go down to 56/barrel. Now of course I don't take what he says seriously, but even the most bullish of bulls is basically saying we are at or near the floor on oil. Can disinflation or even deflation push oil to less than 50/barrell?

Blaze - personally, I'm putting my money where my mouth is (as I usually tend to do). I'm gathering my own capital bonars to purchase something I consider to have real value - shares of an oil producing company. Just hoping nothing happens to shoot oil back over 70 in the next week or two.