mike: I'm not willing to say it can't go on, could this be the beginning of a global boom caused by lower global interest rates, increase in securitization of assets, and improved communication?
I parked some cash in closed-end funds OTCM and FUND (under new management a year ago) - OTCM is microcaps and FUND is international smallcaps. Not tech stocks. They have huge yield and are w-a-a-y under book value. They have zero downside risk if held for a while and catch any upside potential.
If the S&P is the new financial standard replacing gold, then housing, utilities, food, etc, costs less than half of what it did three years ago in S&P units, so does this constitute deflation?
What about all the people who kept money in cash instead of S&P units? They see their dollars worth half of their value of three years ago, isn't this incredibly inflationary? I'm real concerned about what appears to be an incredible devaluation of dollars not tied to the S&P. Have we actually created two sets of currency, dollars and S&P units? If you were the man on the street, where would you put your money? |
