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Pittsburg, Kansas | I would expect any serious shakeup in the overall bond market would cause real assets to catch on fire. The bond market is significantly larger than the stock market which is much bigger than the commodity market. Bonds are nothing but a promise of future money. Give me a hamburger today and I will gladly pay you next Tuesday. If something happens that there is fear in the market that Wimpy might not be able to deliver, money that is not mandated to stay in certain bonds (like certain percentages of pension funds) may take flight. If bond money takes flight it can go into stocks or physical goods. Considering that the bond market is so big, only a small percentage seeking a home elsewhere could take the other markets by surprise. If the stock market is already in the tank at such a time................ that leaves.................. real goods. Hard physical assets. Then we might find out what serious price inflation is really like.
John | |
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Gold and other metals
