Inflation – Has it arrived?

[equalizer]

[quote=Rich Toscano]The US in the 70s, for generic stagflation. (BTW if high inflation and low growth/employment never happen together, why is there a word to describe them happening together?)

Or, for an example of an inflation driven by a loss of confidence in the sovereign debt and currency, Iceland in 08-09.

I don’t know how to make an example gallop so I think I’m good.[/quote]
Whatever started the 70’s inflation (oil embargoes, wage inflation), the economic policy mistakes kept inflation high. Today, Inflation would remedy/reduce the debt problem, so Fed will likely hope for and adopt strategies to increase inflation.

Rich: Are you gonna wear more gold chains than Mr. T at the next (Halloween) meet-up?

“And, as has been stressed by a number of scholars, a belief in a permanent trade-off between inflation and unemployment briefly held sway. These views led to highly expansionary monetary and fiscal policies, and inflation and booming real growth resulted….

The Samuelson-Solow permanent trade-off view was rejected at the start of the Nixon administration. However, it was replaced by another flawed model: first by a natural rate framework with a very low natural rate, then by a natural rate framework with an extreme insensitivity of inflation to slack. It was this succession of misguided models that gave rise to repeated policy mistakes and persistent inflation in this period.”

http://economistsview.typepad.com/economistsview/2007/04/what_caused_the.html

[equalizer]

[quote=pjwal]No one is concerned about inflation, which is why it’s a great time to get TIPS (Treasury Inflation Protected Securities) at a good price at auction. You should keep your overall portfolio to 7-17% of this anyway as the hedge against inflation, imho.[/quote]
Good observation, against the crowd. Mircrosoft, and other top 50 companies are issuing massive amount of short term notes at near 0% to finance dividends and stock buybacks. Who are the dummies on the other side of the trade – pension funds?

[equalizer]

[quote=pjwal]No one is concerned about inflation, which is why it’s a great time to get TIPS (Treasury Inflation Protected Securities) at a good price at auction. You should keep your overall portfolio to 7-17% of this anyway as the hedge against inflation, imho.[/quote]
Good observation, against the crowd. Mircrosoft, and other top 50 companies are issuing massive amount of short term notes at near 0% to finance dividends and stock buybacks. Who are the dummies on the other side of the trade – pension funds?

[equalizer]

[quote=pjwal]No one is concerned about inflation, which is why it’s a great time to get TIPS (Treasury Inflation Protected Securities) at a good price at auction. You should keep your overall portfolio to 7-17% of this anyway as the hedge against inflation, imho.[/quote]
Good observation, against the crowd. Mircrosoft, and other top 50 companies are issuing massive amount of short term notes at near 0% to finance dividends and stock buybacks. Who are the dummies on the other side of the trade – pension funds?

[equalizer]

[quote=pjwal]No one is concerned about inflation, which is why it’s a great time to get TIPS (Treasury Inflation Protected Securities) at a good price at auction. You should keep your overall portfolio to 7-17% of this anyway as the hedge against inflation, imho.[/quote]
Good observation, against the crowd. Mircrosoft, and other top 50 companies are issuing massive amount of short term notes at near 0% to finance dividends and stock buybacks. Who are the dummies on the other side of the trade – pension funds?

[equalizer]

[quote=pjwal]No one is concerned about inflation, which is why it’s a great time to get TIPS (Treasury Inflation Protected Securities) at a good price at auction. You should keep your overall portfolio to 7-17% of this anyway as the hedge against inflation, imho.[/quote]
Good observation, against the crowd. Mircrosoft, and other top 50 companies are issuing massive amount of short term notes at near 0% to finance dividends and stock buybacks. Who are the dummies on the other side of the trade – pension funds?

[pjwal]

[quote=equalizer][quote=pjwal]No one is concerned about inflation, which is why it’s a great time to get TIPS (Treasury Inflation Protected Securities) at a good price at auction. You should keep your overall portfolio to 7-17% of this anyway as the hedge against inflation, imho.[/quote]
Good observation, against the crowd. Mircrosoft, and other top 50 companies are issuing massive amount of short term notes at near 0% to finance dividends and stock buybacks. Who are the dummies on the other side of the trade – pension funds?[/quote]

short term? no one really. just good investing of the money in the bank they have. i mean if they get a better rate than they debt they owe, that’s just smart money mgmt. we are seeing quite a few of these upping their dividends as well as stock buy-back. i’m not advocating msft here, but i think we can be pleased with these type of actions.

i’m not a day trader though. i look at things long-term and actively adjust on a strategy that is not affected by short term variances. 🙂

your thoughts?

[pjwal]

[quote=equalizer][quote=pjwal]No one is concerned about inflation, which is why it’s a great time to get TIPS (Treasury Inflation Protected Securities) at a good price at auction. You should keep your overall portfolio to 7-17% of this anyway as the hedge against inflation, imho.[/quote]
Good observation, against the crowd. Mircrosoft, and other top 50 companies are issuing massive amount of short term notes at near 0% to finance dividends and stock buybacks. Who are the dummies on the other side of the trade – pension funds?[/quote]

short term? no one really. just good investing of the money in the bank they have. i mean if they get a better rate than they debt they owe, that’s just smart money mgmt. we are seeing quite a few of these upping their dividends as well as stock buy-back. i’m not advocating msft here, but i think we can be pleased with these type of actions.

i’m not a day trader though. i look at things long-term and actively adjust on a strategy that is not affected by short term variances. 🙂

your thoughts?

[pjwal]

[quote=equalizer][quote=pjwal]No one is concerned about inflation, which is why it’s a great time to get TIPS (Treasury Inflation Protected Securities) at a good price at auction. You should keep your overall portfolio to 7-17% of this anyway as the hedge against inflation, imho.[/quote]
Good observation, against the crowd. Mircrosoft, and other top 50 companies are issuing massive amount of short term notes at near 0% to finance dividends and stock buybacks. Who are the dummies on the other side of the trade – pension funds?[/quote]

short term? no one really. just good investing of the money in the bank they have. i mean if they get a better rate than they debt they owe, that’s just smart money mgmt. we are seeing quite a few of these upping their dividends as well as stock buy-back. i’m not advocating msft here, but i think we can be pleased with these type of actions.

i’m not a day trader though. i look at things long-term and actively adjust on a strategy that is not affected by short term variances. 🙂

your thoughts?

[pjwal]

[quote=equalizer][quote=pjwal]No one is concerned about inflation, which is why it’s a great time to get TIPS (Treasury Inflation Protected Securities) at a good price at auction. You should keep your overall portfolio to 7-17% of this anyway as the hedge against inflation, imho.[/quote]
Good observation, against the crowd. Mircrosoft, and other top 50 companies are issuing massive amount of short term notes at near 0% to finance dividends and stock buybacks. Who are the dummies on the other side of the trade – pension funds?[/quote]

short term? no one really. just good investing of the money in the bank they have. i mean if they get a better rate than they debt they owe, that’s just smart money mgmt. we are seeing quite a few of these upping their dividends as well as stock buy-back. i’m not advocating msft here, but i think we can be pleased with these type of actions.

i’m not a day trader though. i look at things long-term and actively adjust on a strategy that is not affected by short term variances. 🙂

your thoughts?

[pjwal]

[quote=equalizer][quote=pjwal]No one is concerned about inflation, which is why it’s a great time to get TIPS (Treasury Inflation Protected Securities) at a good price at auction. You should keep your overall portfolio to 7-17% of this anyway as the hedge against inflation, imho.[/quote]
Good observation, against the crowd. Mircrosoft, and other top 50 companies are issuing massive amount of short term notes at near 0% to finance dividends and stock buybacks. Who are the dummies on the other side of the trade – pension funds?[/quote]

short term? no one really. just good investing of the money in the bank they have. i mean if they get a better rate than they debt they owe, that’s just smart money mgmt. we are seeing quite a few of these upping their dividends as well as stock buy-back. i’m not advocating msft here, but i think we can be pleased with these type of actions.

i’m not a day trader though. i look at things long-term and actively adjust on a strategy that is not affected by short term variances. 🙂

your thoughts?

[gandalf]

Interesting stuff. Question of our time.

Won’t come from productivity, wages, etc.

Wonder what/when triggers the decline…

[gandalf]

Interesting stuff. Question of our time.

Won’t come from productivity, wages, etc.

Wonder what/when triggers the decline…

[gandalf]

Interesting stuff. Question of our time.

Won’t come from productivity, wages, etc.

Wonder what/when triggers the decline…

[gandalf]

Interesting stuff. Question of our time.

Won’t come from productivity, wages, etc.

Wonder what/when triggers the decline…

[Author]

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