RiskAverseAlert

Why a Market Crash Doesn’t Matter

Buffett and Lynch might wish to ignore the general stock market, but Jesse Livermore never did. Per company-specific investing, well, how might one best view Buffett's proposed BNI buyout? To my way of thinking it makes a great deal of sense to view this as an attempted capital preservation play, rather than capital appreciation. Thus, what's this say about the outlook of an investor whose BRKA was clobbered by over 50% last year?

Likewise, what of pathetic dividend yields offered on stocks you mention? Why would not investors fast be moving to a point where competitive returns on equity are demanded at a time when liabilities higher up in the food chain are being expanded like so many circus balloons?

Three Asset Classes that Can Actually Outpace Coming Inflationary Price Increases

Any worse than double-digit inflation to come is likely only in a process of breakdown of the global physical economy. Financial assets surely will deflate; the hyper-inflation of monetary aggregates in response to the "credit crisis" virtually assures this. View the wall of money as a war chest. No Fed tightening will change the outcome this wall portends. Financial asset deflation was begun when the sub-prime mortgage market imploded, and it will not stop until cooler minds are given opportunity to act on the fact that, the present financial system is bankrupt, must be put through reorganization, and reestablished in an environment whose sound structural framework already has historic precedent (think the Bank of the United States).

Until policy drastically changes and calls a bankrupt duck "fupped duck," increasing segments of physical production will cease to exist because finance to support physical economic processes will not be forthcoming in those measures needed to sustain present capacity. We already see this effect in so many places you would have to be practically blind, deaf and dumb not to acknowledge what, really, is going on.

Thus, given our present direction, it is by scarcity that hyperinflation will be felt by most.