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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (2214)	6/9/2003 1:34:21 PM
From: Perspective	Read Replies (2) \| Respond to of 4905

AG can continue to pin the yield curve where it presently is ad infinitum. He can literally print the money to do it, and Bernanke has all but guaranteed they will make good on this threat. As long as they are printing money to jam the curve lower, valuations will float where they are, even if inflation rises. Earnings track the inflation, and equities track the earnings. Due to the deflationary pressures, the Fed won't be able to wean us from zero interest rates even as inflation soars. The odds bets here are continued zero rates, sustained high valuations, and soaring inflation (which equities may track). The only question is whether or not the rest of the world joins in the bonfire of the currencies, and their likelihood to do so prevents me from seeking refuge in international financial assets. BC

To: Wyätt Gwyön who wrote (2214)	6/9/2003 1:40:14 PM
From: Perspective	Read Replies (5) \| Respond to of 4905

I need help assembling a diversified portfolio for a world of rising inflation. What the hell do you invest in besides gold? I've found T Rowe Price New Era fund, and PIMCO Commodities fund, which I plan to commit 5-10% of assets to. Unfortunately, they're both heavily slanted toward energy. I want something that tracks my cost of living - without the negative impact of collapsing corporate profitability. If companies are squeezed between weak final demand and rising costs of inputs like labor, energy, and raw materials, I want to own things that track labor, energy, and raw materials... BC