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

To: ggamer who wrote (76220)	12/20/2006 2:06:17 PM
From: NOW	Respond to of 110194

some mix of :USD 2 yr or shorter notes swissie cd's yen gold and gold stocks esp juniours uranium and oil stocks guns and ammo

To: ggamer who wrote (76220)	12/20/2006 2:20:07 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

A quick answer. Future outcome of the bubble/inflation will depend in large part on government economic policy, and nobody can predict that. IMO we are in for severe stagflation in the best case scenario and hyperinflation the worst. Bonds, stocks give conflicting signals. The classic economic theory cannot be applied here, because this is not a normal economy. A normal economy is a free market economy with sound currency. Here we have neither. It is quite possible that in the upcoming debacle both bulls and bears will be wiped out. I would advise anyone against taking any long term positions betting on either inflationary/deflationary outcome. Things can change in a flash. As for me , i got out of the dollar. What i am doing is trading US stocks and futures in a euro and australian dollar denominated accounts. As i feel hyperinflation is more likely, my bets tend to focus on short the dollar/long commodities play. I try to limit short selling of stocks, although i am short some stocks most of the time. I try to short stocks that should be hurting in an inflationary environment and buy stocks that benefit from it. I try shorting bonds once in a while, but that has been a loser.