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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (43242)	1/7/2013 8:25:48 AM
From: robert b furman	Read Replies (1) \| Respond to of 218443

Hi Vendit, He's right about bonds should be kept short term to intermediate. When and IF inflation comes back holding bonds to maturity is the only way to get your money back - that I believe. Inflation has been absent -the result of overpowering deflation from emerging markets. I an NOT sure that is over. I am sure it has busted unions and their pensions. Union pensions loom huge as a problem. I have a friend in Wisconsin union mason - works very hard in anyones view. He has many weeks of lay offs in winter. In the good ole days the mason union numbered 3500 - they now are 1200 and looking for work and must fund the pension which has three times the outlays to retirees vs current workers. Not sure I see the answer to that house of cards Public people have been in too much debt and crawling out of that is a longer term event. My observation as a car dealer is after excess supply is gone everything gets more expensive new and used. I've said for years that will happen in real estate but it is a longer time frame event. Auto's wear out in 12-15 years and are financed for 5-6 max. Homes last longer and are financed 15-30 max - takes a longer time to achieve equity unless real estate starts climbing in value as excess supply goes away. a 2x4 today costs more than it did in 2007 same for concrete. It is complex and very hard to get a grip on because it is a long term evolving event - hard to see it changing. Like most things easy to in hind sight. Bob