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Tue 10 Apr, 2007 11:34 am
Accelerating prices and a slow- or no-growth economy is a killer combo called "stagflation".
On the recession side: the housing slump, the worsening mortgage market, the continued loss of jobs to lower-paid workers in developing countries. Pay raises have been blah for several years running. On the inflation side: the accelerating price of manufacturing supplies reported by companies across many industries in the Institute for Supply Management, or simply check what you're paying for healthcare, college tuition, gasoline, or that monthly mortgage.
The one thing on our side that we don't have like in the 1970s - something that would really push the market over the top -- an oil embargo.
I'm making the big $$ right now in the Stock Market, so I'm not complaining.
Buy bonds, if you're worried.
how ??.. wanna know more about bonds ..
Miller ....help me out please
ai wrote:how ??.. wanna know more about bonds ..
Miller ....help me out please
What do you want to know?
Quote:check what you're paying for healthcare, college tuition, gasoline, or that monthly mortgage.
Check out the cost of food! $4 for a gallon of milk and $3-4/pound for tomatoes.
Some of the increased cost of food is due to the high gas prices - costs much more to ship. For tomatoes a good part is due to the winter.
If you are interested in purchasing in the bond market, I would suggest buying a fixed income mutual fund. These funds invest in a large group of bonds. Easiest and cheapest way for the average person. Most people can't afford to buy bonds on their own because of the large investment required. Contact any reliable mutual fund company for more information.
I still suggest purchasing equity (stock) funds over bonds if you are planning on investing in the long term. If a period of stagflation or recession occurs, you simply don't sell. At that time if you can, purchase more while its cheap. In the long term equities do much better in earnings.
I have only a few select mutual funds. The rest of my investment is in bonds and stocks.
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