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Subject:  Printing a Weaker Dollar Date:  11/21/2012  6:27 PM
Author:  trader2012 Number:  34516 of 35877

It should occur to you, as you watch Rickard’s interview, that Bernanke has multiple intentions with continuously printing money. One is a cheaper dollar (and the subject of Rickard’s book on currency wars). The other is persistently low interest-rates, maybe even far beyond Bernanke’s promised 2015 target. That’s makes it tough to break into the bond-game at this late date with other than investorly, credit-worthiness bets, or outright trading bets on the direction of interest-rates (though Schiller thinks that trade still has legs). In either case, the bond bull lives!

Back in 2000, getting entirely out of stocks (in favor of bonds) seemed like a risky move from the viewpoint of genuine capital appreciation. But the asset-class has proven to be the safer and more profitable place to be for over a decade now. Yes, eventually, interest-rates will rise again, because nothing lasts forever. But just as the the market can remain irrational longer than you can stay solvent, interest-rates could stay low longer than those who want to buy principal-protected instruments can wait for them to reappear at attractive prices.

In other words, the advice th