Gyroscopic Investing

OK. I have the distinct feeling that yesterday may be remembered as a red letter date. The question nagging the VP part of my brain is whether it will be recalled as the day we finally broke the depression and began a serious economic recovery, or will be it seen as the day we became Argentina?

So the Fed says they are going to print money until... employment improves. Looking at things from the perspective of four possible economic conditions, and conceding that the future cannot be predicted with certainty, I think yesterday's actions render two of those conditions unlikely in the near term at least. Those being deflation and a tight money recession. That leaves prosperity and inflation or possibly some combination of the two.

My VP thinking suggests that this is a time when one would want own things and not promises (i.e. bonds). Maybe going heavy in equities? Foreign stocks? Adding gold or silver? Real estate? Essential commodities such food and or fuel?

Any thoughts on this and or how to play the printing press? Or maybe you think I am wrong in my premise and we could still see deflation?

Ad Orientem wrote: Any thoughts on this and or how to play the printing press? Or maybe you think I am wrong in my premise and we could still see deflation?

Fannie/Freddie Mortgage REIT's.

Ad Orientem wrote: OK. I have the distinct feeling that yesterday may be remembered as a red letter date. The question nagging the VP part of my brain is whether it will be recalled as the day we finally broke the depression and began a serious economic recovery, or will it be seen as the day we became Argentina?

It will be the day we turned Japanese.

l82start wrote:

MediumTex wrote:
It will be the day we turned Japanese.

http://www.youtube.com/watch?v=BvMgnH7sGI0

Imagine Bernanke lip syncing this:

I've got your picture of me and you
You wrote "I love you" I wrote "me too"
I sit there staring and there's nothing else to do
Oh it's in color Your hair is brown
Your eyes are hazel And soft as clouds
I often kiss you when there's no one else around

I've got your picture, I've got your picture
I'd like a million of you all round my cell
I want a doctor to take your picture
So I can look at you from inside as well
You've got me turning up and turning down
And turning in and turning 'round

I'm turning Japanese
I think I'm turning Japanese
I really think so
Turning Japanese
I think I'm turning Japanese
I really think so
I'm turning Japanese
I think I'm turning Japanese
I really think so
Turning Japanese
I think I'm turning Japanese
I really think so

I've got your picture, I've got your picture
I'd like a million of them all round my cell
I want the doctor to take a picture
So I can look at you from inside as well
You've got me turning up and turning down and turning in and turning 'round

I'm turning Japanese
I think I'm turning Japanese
I really think so
Turning Japanese
I think I'm turning Japanese
I really think so
I'm turning Japanese
I think I'm turning Japanese
I really think so
Turning Japanese
I think I'm turning Japanese
I really think so

No sex, no drugs, no wine, no women
No fun, no sin, no you, no wonder it's dark
Everyone around me is a total stranger
Everyone avoids me like a cyclone ranger
That's why I'm turning Japanese
I think I'm turning Japanese
I really think so
Turning Japanese
I think I'm turning Japanese
I really think so
I'm turning Japanese
I think I'm turning Japanese
I really think so
Turning Japanese
I think I'm turning Japanese
I really think so

Turning Japanese
I think I'm turning Japanese
I really think so
Turning Japanese
I think I'm turning Japanese
I really think so
Turning Japanese
I think I'm turning Japanese
I really think so
(think so think so think so)
Turning Japanese
I think I'm turning Japanese
I really think so

funny!!

somehow when i imagine him lip syncing it, i see him looking at and singing about the picture on a dollar bill...

 

"a cyclone ranger"

My guess is a brief commodity price spike which will cause costs to increase for companies and households, a consequent further slump in real economic activity and then a sharp reversal in commodity and stock prices. So a rinse and repeat of the commodities up, then LTT up, then stocks up, then commodities up, then LTT up, then stocks up etc.

I guess buying silver when Reub suggested it a month ago would have been the way to catch this part of the cycle but that chance has now been missed . So perhaps an intrepid speculator would wait until the oil price rises to the point where the economy is hurting and then buy LTT in anticipation of the coming  reversal in commodity and stock prices. I'm not believing my hunch enough to do anything based on it but that is my hunch.

Turning Japanese may be more apt, but around this time last year we learned what music Ben really likes.  ;)
http://www.theonion.com/articles/drunke ... hoo,21059/