David Braunstein

Best Available Risk Reward Proposition

I really don't buy the inflation theory. Even with the stimulus, the CPI is running a deflation of 2.2%. What happens as stimulus is withdrawn? How do you reconcile declining real estate prices with inflation? I agree that there is risk in long-term bonds as the economy may come back one day, but that day is not soon. In the meantime, I would be looking to buy long term bonds after the Fed stops its quantitative easing program. Then we will see the true rate of deflation surface.