Commented on “The Reformed Broker”

The Reformed Broker has a good post out today on investing and essentially, where do we go from here.  I left him a comment there but I also wanted to post it here as well.


First, a good article. And I think for the consensus point of view, it strikes a chord. That frame of reference you’re using is one that presupposes an inflationary environment. It’s natural for us to presume it because inflation is all most of us have ever seen or experienced.

But allow me to offer a different one. In a deflationary environment, your focus isn’t on increasing asset valuation, but preventing decreases in their values. Here, cash is the best defense not because it will gain the most, but because it will lose the least.

Originally posted as a comment
by professorpinch
on The Reformed Broker using DISQUS.

Leave a comment

Filed under finance, macro, Markets, risk management, Way Forward

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s