It feels like we are on the edge… Of what I cannot say, but it does not feel good. All the signs are there to be seen, and I am reminded of the saying "The whole is greater than the sum of the parts." If the global economy begins to rattle from the load, it could all come down.
I have read several investment authors who argue that the 60% stocks/40% bonds "balanced" portfolio is obsolete. I certainly would agree. Even with yields as high as they are, once taxes are paid, are those bond yields above the real inflation rate? I have never been tempted to rush out and buy bonds. I'll take my chances with my stock portfolio which is tilted primarily toward commodities.
Insurance companies love inflation. It makes it much easier to pay off claims with inflated dollars. As an example, if you bought a $100,000 insurance policy in 2001 and you died in 2025, due to inflation that $100,000 your family is paid now has the 2001 purchasing power of only $53,428. Inflation fools many people unless they look to see what it does to the value of everything over time.
It feels like we are on the edge… Of what I cannot say, but it does not feel good. All the signs are there to be seen, and I am reminded of the saying "The whole is greater than the sum of the parts." If the global economy begins to rattle from the load, it could all come down.
I would say "on the Eve of Destruction," in deference to Barry McGuire's 1965 protest song.
I have read several investment authors who argue that the 60% stocks/40% bonds "balanced" portfolio is obsolete. I certainly would agree. Even with yields as high as they are, once taxes are paid, are those bond yields above the real inflation rate? I have never been tempted to rush out and buy bonds. I'll take my chances with my stock portfolio which is tilted primarily toward commodities.
Insurance companies love inflation. It makes it much easier to pay off claims with inflated dollars. As an example, if you bought a $100,000 insurance policy in 2001 and you died in 2025, due to inflation that $100,000 your family is paid now has the 2001 purchasing power of only $53,428. Inflation fools many people unless they look to see what it does to the value of everything over time.
Great article.
It is hard to square the high market prices, except in precious metals, with the horrible world situation.
https://www.moonofalabama.org/2026/07/war-on-iran-oil-supplies-will-again-be-in-trouble-this-time-for-real.html