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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Archie Meeties who wrote (122156)	7/5/2009 9:22:14 AM
From: Ed Ajootian	2 Recommendations Read Replies (2) of 206131

OT: Arch, thanks for your thoughts as always. If I may ask, what do you consider to be "value" at this point? Please forgive me if you have already mentioned this, I haven't been keeping up with all the posts here recently. I'm beginning to believe that the chances of there being an extended period of stagflation (i.e. rising inflation combined with little economic growth) are getting pretty high. It would seem that oil prices would stay fairly flat in that kind of environment, which is not the end of the world for oil investors but not immensely exciting either. Does anybody have any great investing ideas for a stagflation economy? One I'm kicking around is to load up on Treasury Inflation Protected Securities, on max margin, in my IB account. IB has very low margin rates (the last I checked they were slightly over 1%, for balances over $100K). So with long-term TIPs yielding 5% that provides a pretty large margin. Since IB's margin rates are tied to the fed funds rate, if you buy into the stagflation argument you wouldn't be too worried about IB's margin rates going up for awhile.

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