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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 690.38

+0.4%

Dec 24 4:00 PM EST

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To: KyrosL who wrote (51424)	5/21/2000 8:58:00 AM
From: RocketMan	Read Replies (1) of 99985

Fortunately, all is not lost. As I pointed out in my previous post, there are plenty of juicy returns to be had in bond land, and I think those returns will become even juicier over the next couple of months. These returns are pretty close to the long term average return on stocks, and, given the current valuation of stocks and my expectation of future deflation, are a no brainer for the buy and hold crowd. I agree with your comments. However, I think we have more of a risk for inflation in the near term than deflation. Deflation will set in if and when we have a hard landing (which I believe we will have). If that happens, I expect the Fed to do what they are best at -- pumping excess liquidity back into the economy, eventually leading to another bubble. In the meantime, if one believes inflation is on the rise, how about inflation-linked bonds?

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