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

To: Real Man who wrote (76191)	12/20/2006 1:23:31 PM
From: andiron	Read Replies (1) \| Respond to of 110194

investing now is as good as tossing a coin. US dollar cash: prospect of dollar losing value us stock: hasn't had correction in many yrs (p/e is well above the norm) emrging market stock: has had unprecedented parabolic run, could easily turn into rout..so very scary euro etc cash: since lows, has already appreciated ~40%. Heck that is 40%!!.Yield still more that 1% lower than USD. commodities/real estate: same as emergin above. bonds: 2007 inflation may trigger long bond yields to rachet up! bond bubble is getting old. given above, i will stick w/ USD money market fund/cash (hence no gold/silver), for the time being.I think US stock may be next best value.

To: Real Man who wrote (76191)	12/20/2006 1:24:12 PM
From: Mike Johnston	Read Replies (2) \| Respond to of 110194

I think it is mostly the bond market that has a pinned look. Stocks are rising, because of all the new money being created around the world, negative interest rates and higher prices charged by corporations being reflected in higher revenues and profits. Stock market benefits from inflation, stocks are hurt by inflation only to the extent that inflation tends to increase bond yields which in turn puts pressure on stock prices. If the Fed monetizes the bond market preventing interest rates from rising,the most likely outcome will be hyperinflation since rates will become progressively more negative.