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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: GROUND ZERO™ who wrote (93169)8/11/2011 8:53:39 PM
From: Real Man  Read Replies (2) | Respond to of 94695
 
Gold and T-bonds are life boats. We got the bounce. Woo hoo! Will it last?
Money has to sit somewhere, that's what I think. So, let inflation be 8%, T-bonds
can be 5%. You lose 3%, but bonds are not as risky, it's a guaranteed loss. Stocks
can tank 15% in a few days, as we have just seen -g-

But you are right, and if we get a lot of inflation and bond holders revolt, it
will not be pretty. This typically happens during currency crashes. I am still not
sure USA can have that due to it's size and the fact that the World is not in
a better shape. Got nowhere to run?



To: GROUND ZERO™ who wrote (93169)8/11/2011 8:58:00 PM
From: yard_man  Read Replies (1) | Respond to of 94695
 
if the UST remains solvent, there may be a rational basis for this "flight to safety" -- that is forward looking.

If one heckuva economic contraction is looming (sure looks that way -- we have been muddling along on hope and when confidence crumbles??) -- then prices will contract and 3% will look good.

But no one has to hold to maturity, obviously.