Hallo Emerald, war dir das bekannt?

verfasst von siggi, 10.11.2003, 12:52

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Sinister Silent Attack on Gold
By: Sol, Tactical Investor

A very sinister piece of news has made almost no headlines It is a piece of
legislation that has been passed by the Senate and is just waiting for House
approval, which most likely will be certain.
I took this excerpt from Forbes
“The Journal's coverage of the tax measure focuses on a provision to allow
U.S. multinationals a one-year window to repatriate profits from abroad at a
reduced tax rate of 5.25%, instead of the current 35% rate. The bill would
also eliminate a tax exemption for Americans working overseas.”
Full story http://www.forbes.com/2003/05/16/cx_da_0516topnews_print.html
If you did not get the implication of that message, let me elaborate on it.
First, by allowing US multinationals to repatriate their earrings back to the
US at a rate of 5.25% is tantamount to a 29% across the board cut in Taxes,
which will more than push them to come to the US. This 29% break more than
makes up for the current devaluation in the dollar. Who would not take such an
offer? Its basically free money.
Now here is where the situation gets sticky. In order to repatriate that money
the multinationals have to change from whatever currency they are currently
holding to the US ollar, effectively they will be buying the US dollar and
dumping their local currency.
This will have the effect of suddenly propping up and giving the US dollar
strength, and as the dollars starts to gain, Gold will definitely be its
victim. So it’s highly likely that Gold’s upward trajectory will be
momentarily halted and that the day of reckoning will be postponed till after
2004.
Not only will the multinationals benefit from the 29% break, but they will
also benefit as the US dollar starts to gain strength. Notice how this
provision is only effective for one year, which coincides perfectly with the
coming elections. The companies who take advantage of this offer early will be
able to make another 10-15% gains as the currency appreciates, so in total
they stand to gain upwards of 39%.
Based on this information, I have to recommend that individuals who have two
gold portfolios (trading and long term) take precautionary measures and take
profits from their trading portfolio’s as Gold is going to run into some
potentially very strong resistance soon. We, at the Tactical Investor, have
already advised our subscribers to take profits and will be sitting and
watching this situation closely.
Also, if you look at this chart that I put up in my last update of the Gold
and the Dow you notice that the Dow is gaining on Gold once more. Could it be
the markets see something that most of us are missing? You be the judge
You can see now the channel formation very clearly from early 2003; the Dow
has actually been winning the battle and is at a critical point. This
legislation might be all that the Dow needs now to go and challenge the old
high levels where it took 35-40oz to buy the Dow.
I am going to zoom in on this chart.
First of all, you can see the Dow has been gaining on Gold since Feb 2003,
about the same time that Gold started loosing value in terms of the Rand
(which I currently believe is the world’s best performing currency). We are
also in the process of completing a wedge. The moment we break through this
wedge the price action should be explosive and now with this new piece of
legislation we are all but assured that this move will take place
What should you do?
Well almost all the Gold bugs and smart investors who got in early should be
sitting on some profits so it won’t hurt to take a little of the table, but by
no means sell out all your positions. We have told our subscribers to take
profits in their smaller trading portfolios but to hold their long-term
portfolios. When and if Gold does pull back here and should it get to the
point where it takes 35-40oz to buy the Dow, I would view this as a mouth
watering opportunity to load up on gold shares and Gold bullion. My trusted
associate and Pal John Tyler from the www.infognome.com has this to say.
The machinations behind this move run deep and are open to several
interpretations.
The rate of M3 growth sank, and the whole system is devouring dollars with an
unquenchable thirst. The Fed needs to keep liquidity in the domestic economy,
and this move can be seen as just that. It is another shift of the The
Titanic’s deck chairs. The band plays on; the ship appears unsinkable.
Is this bill the lifeboat that US business needs before the dollar is allowed
to FALL to ITS REAL VALUE? There is off course one strategy to deal with the
twin risks of a plummeting dollar and inflation. SOS - Save Our Savings - and
get some gold! Use any weakness to build positions for the secular gold bull
market!


http://news.goldseek.com/TacticalInvestor/1068245901.php


lg

siggi











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gesamter Thread:

• Hallo Emerald, war dir das bekannt? - siggi, 10.11.2003, 12:52
  • Teile dieser News wurden hier am Samstag oder Sonntag eingestellt............... - Emerald, 10.11.2003, 13:49
    • Re: Samstag oder Sonntag eingestellt. Sorry, ist mir wohl entgangen, aber - siggi, 10.11.2003, 14:45
      • u.A. sind ganz ausgewählte Broker beauftragt f.d. FED Dow-& S&P-Werte zu kaufen! - Emerald, 10.11.2003, 14:51
  • Re: Hier die Interpretation vom grand old man Jim Sinclair dazu - chiquito, 10.11.2003, 15:40