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

To: patron_anejo_por_favor who wrote (216369)	8/19/2009 4:33:25 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 306849

Rosenberg on deflation: It is clear that the deflation trend is going global as we saw today in Germany with its PPI sliding a record 7.8% YoY as of July — an even steeper downtrend than the -4.6% pace posted in June. Canada’s CPI also dropped a larger-than-expected 0.3% MoM in July, and that took the YoY trend to -0.9%, which is the most negative trend we have seen in 46 years! Even the core CPI in Canada was flat last month, so this is not “only” an energy price story.

To: patron_anejo_por_favor who wrote (216369)	8/19/2009 4:45:03 PM
From: Perspective	Read Replies (1) \| Respond to of 306849

Yep, I hear it from friends and family that I complain to about the markets. "Why don't you just get OUT?" Well, ya can't. You have to hold something, even if it's cash. And there is a credible scenario under which cash gets destroyed. I guess the real equivalent of "just get out" would be extreme diversification - bet half on the inflationary scenario and half on the deflationary scenario. If it explodes either direction, you win. I'd like to think that it's a slow enough process that I can see the trend appearing. Right now, deflation still appears to rule the day, hence my focus on shorting stocks. If anybody ever sees ANYTHING that makes it appear that inflation is showing up, please let me know, but all I see is the fuel, with no spark. `BC