<<so how does one profit from this? >>
by watching baseball games and hanging out w/ your kids and not fretting that the era of American dominance is over. trying to MAKE money in a deflation / bear market is a fool's errand, IMO.
if that is not enough of a "profit" for you, then long US treasuries, long gold, long natural gas and especially LNG, short financial services, short educational services, short facilities-based healthcare services. i am ambivalent about commodities other than energy as i know less than nothing about them, but if you want a fool's guess i'd prefer food-type commodities to industrial-type ones. for the baseball bettors out there, i would get long the over for the Red Sox and Yankees, and short the over for the Cubs and Royals. and get as much money on Javier Vazquez for the AL Cy Young as you can.
again though i'd personally re-iterate that the primary goal should be the MAINTENANCE of as much purchasing power as possible, as opposed to its GROWTH. the real money will be made in the next bull (and yes, there will be one) not in the deflationary bear (to the extent that you do in fact believe a deflationary bear is on the way). yeah, its boring to sit on your hands and do nothing for 10-20 years, but i think Red Sox / Yankees and my daughter can probably sustain me for that long.
Cheers |
