re: #113 Last Mohican

So which wins, the higher interest rates, or the higher inflation? In other words, can I just put my money in a money market account and expect to do okay? Or do I need to eliminate my exposure to American stocks, bonds, and anything else valued in dollars? Will other countries have inflation similar to ours, or will their currencies remain more stable because their governments haven’t decided to print such enormous amounts of money?

There will be a spiral upwards for a while in rates as one gives rise to the other. You will have inflation around the world, if you think our economy is screwed up, go take a good gander at the UK and such with the exception of China.

Money markets won’t keep up, neither will fixed income instruments. I won’t tout specific stocks but I would look towards the energy sector as a whole, which will get real expensive real quick. Also other safe havens would include gold and commodities.

People got to eat.