DannyBoy29

Investment Ideas for an Inflationary Environment

I agree with much of what was said in this article. I do think that by trying to print our way out of this we are going to create inflation (fairly obvious point) but the big question is when. The Fed is much more worried about deflation right now b/c with interest rates near 0 and -3% inflation we are looking at rates of +3% which is certainly not what we want.
I did nibble at some TBT based upon this premise and the fact that yields are pricing in a massive depression (I have some longer expiration puts on the US$ as well). My issue now is the fact the fed will start buying long term treasuries pushing TBT lower. The fed is trying to create inflation but I just don’t think it is going to work for at least another 9 months. As I type I am trying to decide if I should sell my TBT holding but when I see yields this low I think we have a bubble in treasuries. I do like LQD here as I think investment grade corporate yields will fall and just bought some today.

Anyway great article!