Given that, it seems like deflation is the most likely outcome. In times like this, I would expect asset values to decline and probably over correct. I expect to find a lot of bargains over the next few years. I’m investing very conservatively right now because I want to guarantee that I’m in the position to buy in the future. If I were to invest in something more risky, there’s probably still some opportunities on the down side. Once the bailout bill passes, I expect the markets to rally so there might be some shorting opportunities.
I’d like to hear other people’s views. I’m always interested in hearing new ideas.
