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To: John Vosilla who wrote (294)2/26/2007 3:17:44 PM
From: SouthFloridaGuyRead Replies (1) | Respond to of 1718
 
Stagflation is possible and in fact probable, but with a yield curve inversion of 53 basis points and inflation expectations hovering 2.3%, it's not even remotely priced in.

The current conditions are stimulative for financial assets even though the "real economy" is sluggish.

When the stagflation scenario becomes apparent vis a vis treasury pricing, inflation expectations, etc. then I'll sell, but not a moment before.

I-M-O