SOS Economic Behavior

the lower the price the lower the demand, the higher the price the higher the demand

no wonder it is always the 90% that lose their money

this is what Robert Prechter believe;

when the US dollar appreciate (the loan become bad far exceed new credit created)

the following will happen

• crude oil will drop
• precious metals will drop
• agricuture commodities will drop
• stocks will drop
• property prices will drop

Thanks to the near zero interest funding, most of the cash went into the above assets classes. when the US dollar strengthen, the carry trade will unwind, hence, selling those class of assets and running back to USD.