Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: flyboy who wrote (53628)	1/3/2001 7:47:25 PM
From: Mike M2	Read Replies (2) \| Respond to of 436258

Flyboy, history shows that hyperinflation is more destabilizing the classic case Weimar Germany. If inflation is so good Latin America would be the most prosperous continent. mike

To: flyboy who wrote (53628)	1/3/2001 8:17:09 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 436258

Deflation is ALWAYS much more dangerous that inflation for any economy Agreed. Moreover, inflation may even be NECESSARY to get out of this mess. People and corporations have borrowed so much that the only way they will be able to repay is with inflated dollars. Given that inflation is the most likely scenario into the future (with occasional scares of deflation thrown in), we have to set up portfolios of inflation beaters. Franchises like BRKB, KO, G, MRK, PFE (and to a much lesser extent, technology franchises like CSCO, MSFT, SUNW) look promising. However, your investment returns depends on the price you paid -- the higher you pay, the lower your returns. One should also think of small-cap stocks (especially something like the S&P Smallcap 600 value index), since small companies are the ones that have the ability to increase their earnings faster than the rate of inflation.