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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: 4rthofjuly007 who wrote (6295)	11/16/2001 5:24:57 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 99280

High grade corporate bonds are going down too --albeit at a slower pace. The only sector of the bond market that remains strong is junk bonds -- but those often move more in tandem with equities than higher grade debt. You are correct in arguing that inflation is not a near-term threat with all the excess capacity in many industies. However the Fed has ballooned the money supply at a staggering pace lately which creates the potential for an inflationary surge soon after the economy turns. This will be doubly true when the buck finally does its inevitable swan dive.