The bottom can fall out in different ways. I think it is a mistake to assume prices will get cheaper just because demand lessens. Here is a good article explaining why. Preparing for inflationary times. I have explained this several times in the past, but this article does the subject better justice than my explanations. Here is a real time example of it happening. ---------- India's main cost-of-living benchmark, accelerated to 5.79 percent from a year earlier, far outstripping market forecasts of a five percent jump. The congress-led government has been desperate to tame inflation, especially of food, and revive the economy ------------
Imagine that, a poor economy yet prices rising. Already in the US and coming with more of a vengeance soon. As always, my opinion., John |