Charlie Stromeyer Jr

Stock vs. Bond Valuations

bearfund, I should have been more explicit. What I meant is that the *core* rate of inflation was abnormally high during the 1970s compared with the past century. Paul Volcker finally took care of this problem and then the core rate trended lower and has stayed relatively low since then.

Note that over long periods of time in the U.S. economy that the headline rate of inflation has converged towards the core rate.

Disclosure: short 10 year Treasuries since a yield of 3.52

Stock vs. Bond Valuations

Shouldn't you look at a chart over a longer period of time and also factor out the 1970s because during the past century inflation was abnormally high during the 1970s, and inflation is historically the worst enemy of 10 year U.S. treasuries?

Thanks.

Don't Confuse Correlation with Causality

hmm, now frontier markets are being sold as diversifiers

A Fed Rate Hike Won't Solve the Current Crisis

Brian in Montreal, according to Bloomberg, the price of oil has moved inversely to the U.S. dollar 90% of the time over the past year.

Natural gas for the U.S. transportation fleet could last an estimated 20-30 years until we are ready for a new replacement technology.

Disclosure: Canada freakin rules because I have been long Canadian equities since the start of the Iraq War.