Why does it have to be one or the other? What if we have both… stagflation like the 70s. We have the consumer spending tapped out and housing going down. At the same time, oil and commodities are sky high, which causes inflation. The easy money that get pumped into the systems can possibly stave of a full blown depression and causes just a mild recession instead. However, due to the flood of $, inflation goes through the roof. I guess only time will tell which way we go, but at this time, invest in anything seems risky since I view it as we’re at a fork in the road. Doesn’t smart money always go some where? They’re never on the sideline for long since inflation will eat away their cash. The million dollar question is, where will the next bull sector be.
