Investment advice

from economists is cheap.  Most of the time they are wrong, very wrong.  PIMCO wants inflation (I think so that bond yields will rise, which means PIMCO is short bonds).

Lobbying for inflation on Bloomberg TV

The question of the day is:  With bond yields at all time lows, what do you do if you think bond yields will eventually rise?

Silly question.  You can do what PIMCO does – lobby for inflation.  You can short bonds.  You can do this by selling them, just as IBM just did.  If an individual investor, you can do the next obvious thing:  buy stocks.

But why are people afraid of the stock market?  Because they got burned by the 2008 crisis.  But wonder of wonders, investors seem to be bubbly recently about the Philippine stock market.  All because the Philippine economy supposedly weathered the 2008 debacle reasonably well.  Somehow I don’t believe this, but it seems to make sense.

Make of the above what you will.  I once thought the best investment (or measure of wealth) was not in the financial markets but in your children, or quasi-children.  Still do. Why?  Because you can’t take It with you, but your progeny live on.


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