Hi Grace,
<<savings are much lower
Saving rate is low in the US because of the way they measure savings. What really matters is net worth.>>
No, what matters is not the measurement. What matters is the trend indicated by a consistent measurement methodology. The saving rate measurement is no more faulty than the productivity measurement.
<<net worth is decreasing
Do you have a link that shows this?>>
I understood that the matter was widely reported in the press, but I guess not …
siliconvalley.com
Not directly applicable … but just turned up in www.google.com search on net worth decline, wealth decline, etc …
wsws.org
<<the world ex-USA is sinking in a synchronized and bubble energized fashion
… What else is new>>
‘Synchronized’ is new.
<<I think the money is shortly going to where it has been spiraling towards, what CB describes as money heaven,
The thing everyone losses sight of is that as stock prices fall stocks become more valuable>>
I agree, my cash is and will be worth a lot more of many shares, and soon I will be able to buy without discrimination, trepidation, remorse, regret, and with glee:0)
<<pretty well pinned in place by the FED rate cuts
The FF rate matters less than the amount and size of the repros and coupon passes. The Fed has put a rising floor of money under the market. The real problems will occur as we start to recover because that's when inflation will rear it's ugly head>>
I agree that the FED matters not, and that inflation may be or become a problem, even if deflation happens or is sidestepped, and thus I tend not to precisely spec out what I think will happen, other than noting, in all different ways … <<There is nothing to buy now. The onset of inflation, deflation, stagnation, recession or explosion is all more tolerable as long as one has cash>>
<<Whatever one buys now will more likely go down rather than up in the interim.
There is always something to buy the way there is always something to sell. The question is, is the risk to reward ratio high enough to get out of cash?>>
What do you think is worth buying, if anything?
<<There is nothing to buy now. The onset of inflation, deflation, stagnation, recession or explosion is all more tolerable as long as one has cash
I heard this a year ago and yet 40% of the companies 100 million or more market cap are up over 15% in the last year>>
Yes, but in a meandering market underpinned by FED and pressed down by gravity, how many folks actually can show a NAV increase in the past 12 months? I can, and I have bought nothing except gold, gold shares, cash of various flavors, held my allocation between bonds, shares, real estate basically steady, and sold gold share puts.
The nature of the music dictates the style of dance. The music played now is typical of a Hitchcock movie, right before the J6P enters the dark basement, holding a candle of flickering hope. I am not waiting around for the sudden crensendo.
Chugs, Jay |
