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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (50174)	1/21/2004 5:20:58 AM
From: zonder	Read Replies (2) \| Respond to of 57110

Oh! That's right! Economists are never wrong! Laz, I am not going to argue with your paranoias. If you think inflation in a country can turn out 100% when expected inflation is 30%, I guess you will miss out on the high yield bonds of emerging market countries. Yes, economists can wrong and expectations can also be wrong. However, I bet my money that the actual inflation CAN be 40% (economists very wrong) but that will STILL leave me loads of percentages in profit. That is called a risk premium, by the way. It is why treasury bills of a country ends up paying 55% interest on a year when inflation expectations are 30-35%. If you're a fund manager you get to gamble with OPM (Other People's Money), right? That, too. But they are not complaining. I also invested my own money in this particular t-bill transaction and made 40% in USD terms in three months, so I am not complaining either. So go take a hike :-) >>>Or if you have no idea what to do. <<<< This is my normal state. Dazed and confused, hmm. Just the way we like other investors to be :-)