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Strategies & Market Trends : Investing during a Bear Market -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (12)	11/8/1997 4:47:00 AM
From: Paul M. Rengier	Read Replies (1) \| Respond to of 226

Investor 2, what about a deflation, beginning in Japan as a starting point for a bear market? Paul

To: Investor2 who wrote (12)	11/8/1997 10:56:00 AM
From: Tommaso	Respond to of 226

If what one hears is true, Buffet and Templeton have called a deflationary recession and have favored bonds. Acting on this two or three months ago, I put half my wife's IRA into US Treasury strips (November 2013). This has turned out extremely well so far, with appreciation of about ten percent in a very rocky market and something close to total safety except for the interest-rate risk. Unlike stocks, of course, such capital gains are intrinsically limited. But if we have a contraction that is only a third as bad as what Japan has been through, interest rates ought to drop further. As Bonnie has pointed out, this doesn't allow for possible dollar devaluation. But if you are buying your Big Macs in Chicago and not Tokyo or Berlin, you are still OK.

To: Investor2 who wrote (12)	11/8/1997 11:53:00 AM
From: jerry sigalow	Read Replies (1) \| Respond to of 226

imo stagflation may be the catalyst! j.sigalow