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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: David Zgodzinski who wrote (166552)5/17/2002 6:44:27 PM
From: maceng2  Read Replies (1) of 436258
 
the bullish case for equities would be that they are a nicer inflation hedge than gold

I think, for example, DAK has pointed out that much of the stock market price criteria is based on the rate of USA inflation remaining low. Myth Man has shown that in cases where inflation has shown up, stock prices indeed go up, and I pointed this out to DAK, but there is a delay before one thing effects the other.

This is an important point because of the instability created imho. (and I am slightly above clueless on economic theory, I'm looking at it as an engineer from a process point of view)

Having a huge debt load (as a country, or as a company, or as a person) would not be a good idea in this situation. Lots of small print on loans (supposedly "fixed rate") would need some checking. Loans can get called in too, I'm sure there is small print on that as well.

I'm even ignoring the dubious hedge fund factor here, thieves on wall street, SEC investigations etc etc etc.

just wondering.
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