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kewp
2009 Jan 7, 7:43am
You beat 12%-24% on your investments last year (1%-2% per month)?
I only made one investment over the last two years, the double-inverse financials ETF, SKF.
Once I doubled my money I cashed out.
My investment philosophy is to stay all in cash and then take short positions against collapsing speculative bubbles. It's worked well for me so far!
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Why is deflation written about as if it were a bad thing? Personally, I love deflation because it means lower prices for pretty much everything.
OK, I can see that people will hold cash instead of investing it, because the cash is increasing in value. But that will end eventually as people spend the cash (unless the Fed just prints forever).
And I can see that it's hard to start up a business knowing that profits will probably decrease in nominal terms, but that can be managed, because costs will decrease as well. And if the business generates cash, that cash is more worth getting in a deflationary environment.
Maybe deflation is exactly what we need for a while, to wipe out foolish debtors and get the economy back into a sustainable state.
Patrick
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