Tuesday, April 14, 2009


This is a test. Only a test. Let's try to link macroeconomic reality with specific investment recommendations and see the results. Very simply, I believe that due to the increased spending we will have inflation. Based on this the value of the dollar should decline relative non-inflatable commodities. Demand for oil should remain fairly constant or increase. Therefore a good investment opportunity would be to invest in oil. This is not really an investment in the sense that no true growth is occurring but for an individual investor you should be able to exploit this reality.


Geoff said...

I think your prediction is a good one. I also believe inflation will rear its ugly head in the future. You can "double-dip" if you borrow money to buy those commodities. Inflation is good to borrows!

Having said all that, I am too chicken to do this myself. I have no experience trading commodities, and I think they are notorious for wild price swings. Too much stress for me!

Post a Comment