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.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: EL KABONG!!! who wrote (33621)	5/13/2003 12:27:36 PM
From: energyplay	Read Replies (1) \| Respond to of 74559

Hi KJC - I agree the fundamentals aren't that good... But stocks may be the best of some bad asset classes - Inflation is coming - That will mess up bonds. Treasuries & governments will be hit hard because of thier low coupon. Quality Corporates now don't pay much more than governments. Junk bond spreads hav come down alot - that. State and Municipals are getting riskier. Cash and money markets - 0.75 % per year, maybe. Many people and insitutions can't invest overseas, or in real estate (over valued in certain areas). REITs have been overvalued by yield seekers. European equites look bad - higher euro will hit them . Japan - well... Rest of Asia has SARS worriers. Much of the recovery in Brazil and Argentina has happended. SO a stock with some growth prospects , or paying a 2% dividend, and owning real productive assets, starts to look good to most people. ********** The other way is to 1) look for obscure assets classes, like energy trusts, Mortgage REITs, bonds with real assests, international bond funds, etc. or 2) be a stock picker, in areas like biotechs, oil and gas, special situation & turnarounds.