"Wrong! Said RDogs
when he had sold the high yielding long term bonds years ago in anticipation of >deflation< as he noted earlier, now enjoying 0,0025% yield on his cash account. RDog is still pretty fine, when he notes that retail prices keep falling by their monthly 0,15% pace.
In the meantime, the benchmark T-Bond future has risen to new highs, easily beating the former 155,- of year-end 1999, still offering a remarkable 2,8% deflation-adjusted yield."
RDog was unable to speak when reporters wondered about his odd black-and-white tapestry simply reading the words "ACRT", each piece having three holes of bullet size, but showed them the door shortly after."
[ODD]
----cut-----------
A word from the witting.
Keeping long term bonds or perpetuals in favor of any form of equity or short-maturing receipts is more or less the only profitable investment strategy in an absolute deflationary scenario.
A deflationary scenario is toxic. It prevents any form of earnings growth. By my english perpetual war loans will feed me and the mines till my grand-grand son who will live in the 22th century. They are not for sale, even when they quintupled in prices.
Personal income in deflation? Not wanted, as the wages are diminishing on a monthly basis, yet.
Never heard such BS, not even on highschool. But, relief, more silly people feed more money into the markets.
C.
PS: As for you explicit comments, at least our pinkishness deserves an apologize with an immediate revoke made by YOU. Go there, do me the favor.
You are still free to follow his ideas or to trade at your own peril. |
