No. of Recommendations: 2
You have an interesting viewpoint and I respect it even if I disagree with it. As to how effective the current approach of this administration is on the economy, we really don't need to forecast it, we will live it (probably). But it could influence the way one invests.

I worry that the coming problem is inflation because of the huge Federal deficits, the huge current accounts (i.e. trade) deficits, and thesuper-low short-term interest rates so I put our tax refund into the Vanguard Inflation Protected Securites Fund (VIPSX) which is currently up over 5% from where we bought it. Granted this is short term, but we will see how it works out.

We also had a Treasury note mature in May so I put the proceeeds into a 10-yr TIPS (January). Even though I also had to pay interest that was due and a rather stiff fee from Schwab, we could currently sell it for a profit, even though it is paying now just a bit over 2%. It will be interesting to see (if not for me, perhaps my wife or heirs) whether the interest will rise enough over the 10 years to beat a 10 yr Treasury bond, even one currently paying only 4-1/4% (the long-term average is 5.3%). I point out that the wealthy (the people who buy most of the Treasuries) are worried about something or the rate on the 10-yr bond wouldn't be below normal. But I seem to be not alone in worrying about run-away inflation.

Of course, I've seen other posts on Motley Fool from people worrying about deflation.

brucedoe
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.