Most people assume we will either experience inflation or deflation. And without getting into an economic debate about the definitions of each, it seems like the common usage of these terms is based on viewing the economy in the aggregate. That’s not what it looks like to me.
FWIW, I believe we are headed into a biflationary period. Biflation is when the prices of commodities (think energy and food) increase, while the prices of useless crap decrease. So Joe Average spends more of his check just gettin’ by.
If this is the case, it seems like a strategy geared towards commodities would be more appropriate.
I’m just Joe Average Dude, so I may be missing a HUGE piece of the puzzle here. If so, I’d appreciate hearing different views. Being anonymous, I’m more concerned with “getting it right” than with “being right.”
