Commentary..high yield market
plays out the way you have outlined it, and I
tend to agree with you, what do you think the FED will
do with interest rates?
I can see two strong
forces on interest rates in the U. S; One strong force
pushing them higher to entice more investment in
government treasuries to service our debt, but another
strong force being the FED to lower interest rates to
pull the economy out of recession.
Am I reading
you correctly that you would predict a stagnant
economy, higher inflation, and higher interest
rates(stagflation) which would continue to be negative for bond
holders as well as turning negative for
stockholders?
Cash would be king again?