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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Mike Johnston who wrote (66638)7/21/2006 2:42:11 PM
From: mishedlo  Read Replies (1) of 110194
 
Rich or not, whoever parks money in bonds when inflation is accelerating , with structural deficits, low coupon and vulnerable currency, will suffer.

Once again this is relative
Would you you rather take 5% and lose to inflation or take a 20% beating in the stock market and lose to inflation on top of it.

That of course is if treasuries react negatively to this bust and I do not think they will.

IF (big IF) this is indeed a secular bear market in treasuries and the return of a secular bear market in eqquities EVERYONE will get hurt.

Mish
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