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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (91459)	10/5/2007 8:12:28 PM
From: Perspective	Respond to of 306849

Tells me sector selection is everything, and in an inflationary environment, stocks will go up. Even with rising Fed Funds. I didn't realize just how wrong the conventional wisdom about inflation, interest rates, and stock prices really was. Inflation is GOOD for stocks in general. Higher interest rates might not even matter, and for a long time. It also has me thinking (I know, that's dangerous) that a market can become very bifurcated in an inflationary environment. There are clear winners and losers, and some sectors will decouple from others almost completely. I hope we're there for transports and consumer-oriented stuff now. I just need to figure out what to buy to hedge. BC