AlexR

What Effect Will Hyperinflation Have?

1. If the U.S. really is going down the drain in a big way, tell me why then international stock indexes have fallen much further and faster than the S&P 500 as the crisis intensified?
2. Japan has had persistent deflation for almost 20 years. They have tried very hard to reflate, and so far failed. So much for the "oops" accidental hyperinflation scenario.
3. I have a big 30-year fixed-rate mortgage. Can you say "forget the mortgage, but keep the house"? Hyperinflation just sounds too good to be true. Winning a free house would offset much of the difficulties one would run into during the hyperinflationary transition.

Four Commonsense Clues to a Genuine Market Bottom

Point#4 is brilliant. Most people don't realize the S&P 500 is really a Momentum Trading strategy which invests primarily in stocks that have been going up, while underweighting all the garbage that crashed with the previous bubble.