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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Mike Johnston who wrote (49747)	1/14/2006 11:42:00 AM
From: Crimson Ghost	Respond to of 110194

Your point about inflation and the stock market is right on the money. Inflation is only negative for stocks to the extent that it triggers tighter monetary policy and higher bond yields. Although the Fed has tightened, short rates still are barely in the neutral zone. And bond yields -- supported by continued mountains of foreign CB cash --are now lower than when the Fed commenced tightening. This bull has been much more powerful than I expected because frankly I never dreamed bond yields could be artificially held at such absurdly low levels for so long.