An updated look at the inflation picture (or should we call it the DEFLATION picture?) from Steve Saville: Inflation Watch
Very worth your read because this is not a drill. This is time to get it right. As Bob Hoye said in the Howe Street Audio interview located here, [paraphrased] "it is a privilege to be participating in these historic times in the markets."
I feel that way myself. This is simply the most amazing time most of us younger than 80 could imagine. But it is going to long be remembered as an amazing disaster if we do not get it right. For me, that continues to mean a balance between preservation - where designated - and the assumption of risk - again, where designated. Because when inflation gets out of the bag this time, it is going to be severe.
Just think of all the anxiety $147 oil caused just a few short months ago. Well, any economic recovery is going to be accompanied by those same forces... on steroids. And economic recovery any time soon is far from likely. But if/when it happens, you had better be inflation protected and I am not talking TIPS.
