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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: MrGreenJeans who wrote (14425)6/14/2000 9:36:00 AM
From: Justa Werkenstiff  Read Replies (1) of 15132
 
MGJ: Re: "If the economy was to go into a hard landing it is very possible Greenspan would decrease rates to prevent the US economy from going into a recession."

If the economy was "in a hard landing" a recession would be virtually assured. You may be assuming that he picks up on the slowdown before it is too late. Not a sure thing, especially if inflation remains above trend then he might go overboard. Check out big Fed. hawks -- they are talking about the possible need for below trend growth to quash in inflation.

In any event, bonds are a no-brainer. You win in a soft landing; you win more in a hard landing; and, in either case, you collect interest while you wait.

Give me Naz 5,000 and S & P 1555 and I will be buying bonds like a crazy stiff on a decline in price. Give me some big inflation spike and I will do the same. The Greeenman will always win in the end. I love interest rate risk; I can live without equity risk except for trading.

Nice post.
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