No. of Recommendations: 0
It amazes me that with the dollar dropping so far agains other currencies that we have not seen higher inflation on imported goods.

Past dollar devaluation is already factored in to current prices.  The current accelerating drop is a recent phenomenon (couple of weeks).   It will take a while to see that change. 

wrt bond rate hikes:  That's why many on this board are limiting their purchases to short term CD ladders (1 yr.and 2 yr.). 

Trends may reverse but many US banks and insurance companies have current P/E's less than 10.  When it becomes clear whether they have significant loan exposures or not, they should be a better bet than low interest bonds. 

Many on this board are looking for income, as opposed to capital appreciation.  Others just want to avoid the risk of a loss.  These are uncharted waters thanks to globalization, derivatives and the unique circumstances due to debt load, non-existent average personal savings rate and government deficits.

I'm not sure how long one has to wait to clarify loan exposure.  I would say that it does matter and discretion is advised.

"WASHINGTON, Sept 28 - The U.S. Office of Thrift Supervision on Friday said it closed NetBank Inc , an Internet bank with $2.5 billion in deposits, and appointed the Federal Deposit Insurance Corp as receiver."

http://sg.news.yahoo.com/rtrs/20070929/tbs-netbank-regulators-7318940.html
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