Inflation May Be Coming - Time To Look For A Hedge

[Parsad]

Article by Whitney Tilson and John Heins.  As I've said before, I don't think we will see hyperinflation.  I think once the stimulus is removed at some point, things will be precarious and subdued...stagflation is more likely...elevated inflation with slow growth. 

 

We have all the hallmarks - elevated oil and commodity prices, fragile economy, high unemployment, protectionist behavior, government printing money...it's a "damned if you do, damned if you don't" scenario for any administration.  Cheers!

 

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/31/AR2009123103282_pf.html

[Guest kawikaho]

I somewhat concur.  I think stagflation is the most likely outcome, although the US will see growth in 2010 in the 2% range.  Globally, I've read that 2000 was a great decade.  Maybe 2010 is the start of the decade of decoupling. 

[Parsad]

I have no idea exactly how the market will do in the future, but I think the next decade will be fine as we've experienced a decade with no gain.  Expect more modest growth and corporate profits though.  Cheers!