Xyrus

Not All Commodity ETFs Are Created Equal

It might make more sense to do two ratios with a common base. I'd do a ratio of gas to gold and oil to gold and plot those. I think that would paint a clearer picture.

~X~

Focusing on Commodity ETFs: Hyperinflation Seems Inevitable

Incorrect. DBC is an ETF.

~X~


On Dec 02 12:52 PM cma cma wrote:

> DBC is also an ETN, I believe, sponsored by Deutsche Bank.

Eight ETFs to Preserve Your Wealth

WIP gives you foreign inflation-linked exposure to government bonds.

Tuesday Outlook: Commodities, Emerging Markets

Frankfurt, SA took you out because of your bigoted anti-semetic comments, not because you think the DOW is going to plunge.

There are plenty of people on here who think the DOW is going to crash. The difference is they don't post racist blather on what is supposed to be a financial site.

If you want to spew your narrow-minded views on race and religion, there are plenty of KKK, white-power, or whatever boards for you to post on.

This isn't Seeking Hitler, it's Seeking Alpha. Keep the comments to financial matters and the mods will leave you alone.

~X~

Inflation: CPI vs The Market

First, as rick pointed out, CPI is a lagging indicator for inflation. Companies have already bought their stocks of supplies at the higher prices so it takes awhile to filter through the system.

Second, commodities may have taken a beating but they are still much higher than what they used to be. CPI will most likely continue to increase, but perhaps at a slower pace than this past record setting month.

I wouldn't count the commodities out just yet, though.

~X~

The Deflation/Inflation/Stagnation Debate

Mantooth, I think you need to review your economic events.

The "Lost Decade" in Japan was caused by stagflation. You see, back in the late 80's and early 90's, Japan had a massive real-estate boom. Similar to our current situation, lax money standards helped fuel that bubble. When it popped, their central bank tried to inflate their way out of the problem by slashing rates (all the way to zero). It took a decade to recover from that debacle.

We are in a very similar situation. We've had a collapse in the real estate market. We have high inflation and a slow economy (which keeps heading downwards). Cutting rates more isn't going to help, as that just adds to the inflationary fire (and has already failed to do much). Leaving rates alone won't help, since the weak economy only continues to devalue the dollar (as well as our government's fiscal irresponsibility). Increasing rates (which is what the Fed did in the Depression, despite the economic pain it would bring) will at least stem the tide in dollar losses and put a cap on the inflationary spigot.

Choose your enemy. But no matter which road you take there's going to be pain. Perhaps banks may finally learn that greed can and will destroy if left unchecked.

~X~

El-Erian's Recommended Allocation vs. Harvard, Yale

This is kind of amusing. That's pretty much my allocation strategy...right down to the ETFs. :)

~X~