INO predicts that there will be big move in Q4 2009 for the U.S. Dollar, gold, and for the S&P500. I think they are right, but I do not agree exactly with their predictions.
They have put an educational video that explains all three. It is quite easy to understand and follow.
Watch video here.
They call it the "Potential Mega Trades for Q4". They say: "It seems to me that we are at an inflection point in the economy. The government has blown pretty much all of its money and the economic recovery and the economy is still sputtering along. No surprise there.
So what’s going to happen? I believe that we’ll have another economic downturn which is going to push the dollar to new lows, push gold to new highs, and push the equity markets back down to their March lows".
In essence, they predict the U.S. Dollar to continue to fall (crash), gold to continue to zoom up, and the S&P500 index to fall. Any prediction will be right eventually. It is all a matter of timing. The problem with their prediction is that gold may well go to their $1,200 forecasted, but the current chaos in global currencies will force the U.S. dollar to rebound, which will cause gold to drop first.
Similarly, the U.S. stock market has been going up in great part because the U.S. Dollar has been falling hard. So, both the USD and the S&P500 goingg down at the same time is unlikely. If the S&P500 crashes, there may well be another flight to safety, in the USD. Long term, yes, the USD will go down, it has no other way as the debts will never be repaid. I am working on a correlation study which will further show this point. It should be ready today.