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Technology Stocks : Intel Corporation (INTC)
INTC 43.48+8.6%3:59 PM EST
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To: GVTucker who wrote (144029)9/25/2001 4:42:40 AM
From: Amy J  Read Replies (3) of 186894
 
GV, you mentioned AG was pumping a lot of capital into the system in one of your posts. You also said something like this could potentially cause inflation at some future point.

What probability does that type of risk have?

I ask because the biggest risk to my finances would be to experience an inflationary market immediately after a bad bear market, say 70's style, where the value of a share deflates in the face of inflation. I'm reasonably well-positioned, even if we experience a 30's type of market (because in my case, low prices translate into more shares acquired), but am not well-positioned if this eventually turns into an inflationary market.

My strategy overall in this bear market has been to write covered calls to increase number of shares, which is a good strategy since it has significantly increased the number of shares owned, but that strategy fails in the scenario of inflation, because it assumes recovered shares are not significantly devalued by inflation.

Doesn't the government generally try to get rid of its public debt through inflation? i.e. Would AG be motivated to enable some inflation at the gain of reducing government debt in the face of the $100B expenditures, but at the cost to equity holders? I see inflation as the worst enemy to an equity holder.

Would appreciate your thoughts on this. Thank you.

Regards,
Amy J
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