Gyroscopic Investing

At least it seems the markets are behaving as if Tight Money is on the way in the future, esp with the rumors of the Fed possibly wanting to raise rates in the near future.

Stocks, gold and bonds all dropped in tandem last month..  seems like the environment and the effects all fit the so-called "tight money" environment described in the beginning of the Cash chapter in the book.

Btw, in real terms, we're still behind the 1981 losses of -12.6%

Am I missing something?  It seems Harry Browne has seen this environment before, a more severe one, in 1981.

Anticipation of tight money is different from tight money.

See today's action for an example of how quickly tight money anticipation can evaporate.

Normally I don't think you can draw any conclusions on what sort of economic condition your in based on a month's, or even a quarter's activity on Wall Street. Now if inflation is skyrocketing that might be an exception, but markets move up and down all the time.