A few thoughts? Thanks a bunch for your input!
I'm about to relocate to Silly Valley, but luckily I grew up there
and I get to live rent-free in a paid off house. If not for that,
I don't how I'd ever afford it. Things are a lot cheaper here
in the South, and there's not quite the inflation you're seeing.
Still, I agree the government is missing something here. I believe
the next bear will be an inflationary one, not a deflationary one.
This is one reason I don't believe bonds are a good diversification/
bear protection measure. Despite the best efforts of the Fed, I can't
believe its micromanagement will be perfect.
I already moved an IRA to just 33% US Stocks - and 20% of
that is micro-cap/small-cap - I too see microcaps as weathering
the storm better than most. But I'm up to about 33% cash in
the same account because I know even innocent bystanders
get creamed in a bear.
Any other insight into CEF's? My worry with Mexico is that it
moves so in sync with the US. I'm paying a lot of attention
to correlations - for instance I moved some money out of
Brazil and into Argentina today, since the latter has a lower
US correlation. I already bought into the India Fund,
and will buy the Korea Fund soon. The Korea Fund has
rarely been at a discount, and it is near one now. Got
any other favorites at a discount?
Good Investing,
Mike |
