Hi Pezz,
<<Dinosaurs ... Now I ain't quite sure that I like the way that could be interpreted on this thread but...>>
I was smiling when I started to read this, and think I know what you mean:)
We do agree that what happens to inflation is key to which directions all our markets will go, barring financial accidents in the mean time.
Due to normally prudent allocations, I am typically not concerned about financial accidents, but when the system is fragile, I am more concerned.
The credit problems are known to exist now, and the magnitude is (hopefully) more known than not. Issue, how does one make it go away fast without causing blowups. If we use the drip feed method to transfuse it away over a long period, the economy may go healthy slower.
I am normally also not concerned about inflation, but when the official interest rate policy is to push me out of cash and cash equivalent and into equities, I am more concerned.
To wash away the credit problem, fast or slow, liquidity is necessary, and liquidity is what gives energy to inflation.
I will start unloading some of my short term treasury strips as they have shown a nice gain from Uncle Greenspan's effort. I will try to be patient and park the proceeds in cash, earning next to naught.
Too early to buy long bonds, stocks, or real estate.
Being patient is very difficult for me, as I normally walk at a pace that never fails to easily put half a kilometer between myself and whomever I happen to be walking with. Fear makes being patient easier, just like in the on-line games. A buddy of mine lost 70% of his NAV last year. Very instructive.
<<You guys is kind an gentle...>>
You are right, we are very gentle, in a playful kind of way.
Chugs, Jay |
