Monday, October 18, 2004

Bush Scares the Shit Out of Me

I wonder how this would effect investments - I would say that this would adversely affect the dollar and bonds demoninated in dollars. Or the economy slows and we see deflation.

The rich (who run the country, let's speculate) would want little to no inflation. Bonds tend to do better in Republican admins.

That being said - we're in a war. And Bush would want to expand it....and since reality is no obstacle...inflation may be the answer.

How about this -

1. Dollar would depreciate without much inflation.
2. "Real" assets would appreciate (Land, Oil, Gold?)
3. Non real assets (Brands, quality) will depreciate relatively.
4. Foreign (Europe? UK? Japan) will be better off in terms of actual companies.

This would mean -

Buy some real production companies -

1.PGH
2.PVX
3.TRU
4.BPT
5.FDG
6.PTF
7.ERF
8.EENC
9.SJT
10. Double Down On 9

Also -

LYG
ING
DT


Time to get the heck out...update later
let's see what the market will bring today.

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