Thursday, April 30, 2009

Fibonacci and Inflation! -Thursday, April 30, 2009

I was sent a very interesting link from a trader buddy who agrees with my long-time-held assessment that super inflation is on its way, whether anyone wants to believe it or not.

This is the beginning of the FIBONACCI SEQUENCE:

0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, ...

I'm sure most of you who have heard of Fibonacci's sequence probably think it's main application is in price movements and retracement levels-- it is highly revered by many in that use.

Where it finds greatest power is in the application of time cycles. Walter Roman wrote an interesting article about inflation and Fibonacci you can access here:

http://www.financialsense.com/fsu/editorials/2009/0430.html

I'll be adding this week's trades to this post.....

Joel Rensink
www.infiniteyield.com

1 comment:

The Archiphage said...

I think the article is over-simplifying. There is certainly a case to be made for government destruction of the economy by currency manipulations. However, the hyperinflation in the Continental didn't really get cooking until 1780 or so. Also, the Revolution was hardly something that could be dated to 1776 alone. I'd also question the dating of Lincoln's War for this purpose. Why not date it closer to the beginning, like the Revolution?
None of this is to say that I discount the possibilities of war and/or hyperinflation in America's near future. The terrible potentialities are very real, but I can't see what it has to do with the calendar. Should things continue to bump along as they have been, I don't think that we'll be breathing a sigh of relief on January 1, 2010.
Regardless, I'm still taking the trades as they come. It's all I know how to do for sure!