More Dark Clouds Jude Wanniski and Paul Hoffmeister March 9, 2005

Since our February 23 report "Good News in Short Supply," the equity markets are a bit higher, but so is the price of gold and so is the price of oil. This means we can’t really allow ourselves to feel too happy about nominal equity prices more or less on the rise. Yes, there have been good earnings reports in recent weeks, but they reflect what has been, not what is going to be. And to a degree, they are also not entirely real given the fact that the whole economic system is experiencing a monetary inflation. To be really happy about the near future, we would need to see the stock market indices rising against the backdrop of a flat dollar/gold price...."...