Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (98465)	6/10/2009 4:22:18 PM
From: shadows	1 Recommendation Respond to of 116555

Baby boomers,savers,pensioners and the generally financially responsible need and deserve higher money rates and bond yields.Only debtors fear higher rates and yields,normally cos they have a position(s) they can't afford in the first place. Thus far markets seem to be sorting this mess out.Banks,autos, insurers,real estate,mortgage providers etc have all been cut down.Industry having to become leaner and meaner,consumers having to cut back on spending,and only the Obama Democrats pretending they have all the answers to the recession by malinvesting taxpayer monies in all the losing trades the stock market has or is trying to put to the sword. Stocks currently having a bear market rally,which might yet go alot higher.SNP 1000plus for July 4th!Dollar is weakening(as usual),and money rates and bond yields are normalising-or are about to.Still expect to see a big correction for stocks this fall(maybe even a retest of the lows),but by early 2010 this bear market will be three years old,and hopefully almost over.If the spring of 2008 saw the beginning of the recession then those green shoots might just be producing a very painful recovery by mid-2011. As for inflation,its always there in the shopping basket,but its also there in wages and salaries,often with a lag admittedly.The real victims of inflation are the savers and pensioners,73million people at the last count,and they'll never come back to the stock market again in their lifetime-thats for sure!These are the real investors,they own their homes and need bonds for income,and nothing is ever gonna change that-hopefully!