The Economy

Ibredd, That's a good question. Usually, we must assume that the world economy will one day improve and be strong enough to support the rate of interest regulated by our government. They 'play' with interest rates in hopes of controlling inflation and deflation. As to whether they are successful in highly questionable. Economics is an art, not a science. It's been my personal contention that our economy (as well as the world's strongest such as Japan and Germany) is only struggling along, and the current bull market is only temporary. The strongest economies of the world are sufferring from high unemployment, and the economic fundamentals are not there to support a high stock market. In that regards, I have just transferred some of my wife's equity holdings favoring 60 percent bonds and 40 percent equities. We still have a long way to go before the economic picture improves and becomes stable - IMHO. c.i.