Does anyone think we'll be at 6.5-7% MM rates by mid 2007? If we do, how would you change your short and long term investment holdings.....would you still be long in equities. I won't even bother to ask what everyone would do if CD's hit that mark.
Could be. If that is really the case we will be in a pretty ugly inflationary environment, since I imagine that the Fed would only jack rates that far if we see CPI running a good bit higher than it is. Certain equities would do quite well, but its hard to see how the broader market would be doing well. Commodities would probably do real well in that case.
ferco said:Brewer, what asset allocation would YOU structure in that environment? Would you be more conservative or aggressive?
1982-- Chevy Chase Savings & Loan checking account-- 10%.poboy said:Had a merrill lynch money market account, ready assets, back in the early 80s. It was paying 14%. Had some friends who were being quoted 18% mortgages.