but read any newspaper or ask anyone who follows currencies and see that Bernanke most likely is instituting a tighter monetary policy to stop inflation and is likely going to increase interest rates
BWAHAHAHAHHAAHAHAHAHAAHAHAHAHAHAHAAH. Two words, Jaw-bone. Thats all the Fed is going to do about interest rates. Maybe a 1/4 here or even dare we hope 1/2 point. The Fed is trying and failing to stave off deflation.
There are times, and this is one where being ultra-conservative is the most dangerous place to be. The reasons are two fold. First those in power are deliberately debasing our currency and more important the investments that people think are safest really aren’t. Take bonds for example. How many bond funds hold toxic junk? I don’t know and neither do most of the people who own them.
I’d love to see Berspankme raise rates meaningfully at least up to the real rate of inflation, but it ain’t going to happen. If you are truly ultra conservative, buy some gold, buy some foreign currencies, or ETF equivalents and stocks in solid companies that do well in recessions (like MO). Thats about the safest thing you can do and keep your purchasing power.
