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Non-Tech : Mama Bear goes long! -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (57)	8/9/1998 11:37:00 AM
From: Bonnie Bear	Read Replies (1) \| Respond to of 131

Barb: a genuine deflationary recession is a terrible thing- everything will go down in price because there is overcapacity of everything, even real estate and utilities. And the risk is that the feds and foreign countries go overboard trying to counter the effects of deflation by printing money. If they print too much it can create a hyperinflation or stagflation, where the stock market does nothing to protect the investor from the erosion. So bonds and lots of cash are just dandy, but it's also good to have a hedge. If you're going to hold on to anything, stick with "balanced" funds and not individual stocks. There's rumors about large US companies going bankrupt through a combination of derivatives losses and y2K expenses, and that this was the opportunity for the big guys to cash out before the end. I don't think Europe is any better, BTW. The tops of markets seem to be marked with max employment, and the bottom of markets seem to be marked in the past with double-digit unemployment. So it would seem we have a long way to go before we are at the bottom of this one.