Why Are There Conflicting Views Of High Inflation?

How can there be high inflation on the horizon when the reading is so low?

Inflation Confusion

There is a lot of talk about inflation and the national inflation numbers.  However, people are becoming more confused with the headline reports given by the media, analysts, economists, government, and banks, when compared to what a large number of other economists and investors are saying.  On one hand you have the government, central banks, and some economists stating that inflation is low in the 2% range, and that it is not a threat. This is being broadcasted in the news by the media and analysts on a daily basis.  On the other hand you have some other economists, and investors such as Warren Buffett, warning of massive inflation down the road.  I also fall into the camp that views inflation as a likely problem in the upcoming future (see links to my older posts on the causes of upcoming high inflation at the end of this article).

Analysts Singing The Same Old Tune

With the recent sustained/continued stock market rally, and economists talking about economic recovery and small growth, the analysts have started to sing their same old tune.  Now that the investors are a bit more optimistic, and more willing to take risky bets, they have started to recommend companies left and right again.   They are starting to upgrade more companies, especially those that have recently showed increased profit (or lower losses) in the recent quarter.

My word of advice, stick to your own research and analysis.  Don’t take unnecessary risks, or jump on stocks just because they have been recommended, upgraded, etc. When many stocks were very cheap and selling way below their intrisinic value, the same analysts would downgrade and tell you to sell them.

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My hands full in other matters, so for the next while my posts will be relatively short.

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Thanks & Happy Investing!
The Investment Blogger © 2009

Articles To Review II

There is no new article this week.  But here are some older articles that I specifically recommend to review & re-read.  These three articles mainly talk about DIY investing covering issues to be aware of related to mutual funds, index funds, and personal finances.

Index Funds & The DIY Investor Herd

The Unfortunate Baby Boomers (The Mutual Fund Retirement Myth)

Financial Independence

Personal Finance, The Essential First Step To Investing

How To Start Investing

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Thanks & Happy Investing!
The Investment Blogger © 2009

Articles To Review

There is no new article this week.  But here are some older articles that I specifically recommend to review & re-read.  These three articles mainly talk about government debt, inflation, and money supply.  They explain the implications of the massive government moves and the economics surrounding them.  At this particular point in time, I feel that my readers should review them, and make use if its information in their financial & investment planning.

Implications of The Federal Reserve’s Purchase of Treasuries

The Financial Crisis, Inflation, Gold & Oil

Q&A: Long Term vs Short Term Treasuries, Spread, The Fed, Interest Rates

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Thanks & Happy Investing!
The Investment Blogger © 2009

Time Makes Money

I’ve been pretty busy these last few weeks as I am hammering out some business details.  I haven’t had time to completed a new article for this week.  But I’ll leave you with something that may be more valuable, but less instructive.  Its one of my own quotes/sayings that I points to what I feel is a very important concept.  I use this quote every time someone asks me to explain what I feel are keys to successful investing. However, it runs contrary to one of the most common beliefs that the majority of people have, that only “money makes money” and that is why the “rich get richer and the poor gets poorer”:

Money doesn’t make money, time makes money.
[The Investment Blogger]

Think about it for a while, and why I would say this.  How could this make any sense?   If you understand what I am trying to tell you, you will be on your way to to making some money!   I’ll allow your brain to work on this for a while, and then I’ll follow up with an article in the next few weeks.

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Feel free to post questions, comments, or topic suggestions.
Don’t forget to rate the article!
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Thanks & Happy Investing!
The Investment Blogger © 2009

RCMP Probes Shire International Real Estate Investment Ltd

I found an interesting article in the news last week regarding Shire International, a limited partnership real estate firm based in Calgary, Alberta (Canada).  The RCMP (Royal Canadian Mounted Police), the Canadian version of the FBI, is investigating allegations against the firm in regards to fraud.

Warren Buffett and Mars Inc To Buy Wrigley

On Monday September 7, 2009, privately held candy maker Mars Inc, and Warren Buffett’s Berkshire Hathaway (BRK.A / BRK.B) have offered to buy the Wm Wrigley Jr Co (WWY) for $23B.  Wrigley is the world’s largest chewing gum maker.  This will make Mars Inc, the maker of M&M, Snickers, and Twix candies into the world’s largest confectionery company.

Warren Buffett (Berkshire Hathaway) Sells More Moody’s Shares

According to the Form4 filing on 9/3/2009, Warren Buffett’s Berkshire Hathaway has again reduced its stake in Moody’s Corp [MCO], the credit ratings research and analysis company.