Monday, June 23, 2008
An Hors d'ourvre
My stylized pic of one of my favorite appetizers: prosciutto that is rolled around blue cheese, lambs breath (green) and dried cherries.
John Mauldin has an "Outside the Box" missive:
A Kind Word for Inflation
by Paul McCulley
The argued point is that real inflation will be with us as the Fed will not risk deflation (recession and even perhaps depression that sometimes accompanies massive deleveraging).
I know that Don Coxe is calling for a bond rout--but he was wrong on bonds for too long over this past cycle. While I think he stands head and shoulders above most market commentators, I don't buy this view on bonds which is why today's OTB missive reverberated with me particularly since.....
I've was thinking about utility stocks. If bonds are going to be low interest rates AND utilities pay a better rate then utility's time may be here. I've been hesitant because I've been expecting interest rates to increase; YET I recognize the deflation issue. If the credit morass as more ass to show us, and I suspect that it does, then deflation would be a reasonable worry.
Anyway....watch the utilities.