[dogcom]

After what we have seen in the past couple of years anything is possible.

Right now I am mostly in short term income and bonds until after the seasonal weak period and will look to be more aggresive in the fall. I may miss some of a rally here but I won't get destroyed if we go into another tailspin from here. I think the S&P 500 is probably following the Japan 1990's senario where we get nice rebounds but keep bumping along the bottom until we finally get the dividend averages above 5 and the PE below 8.

 

[dogcom]

We might see inflation from food prices, but I don't see where else it will come from in the next year or so. The only way inflation can be achieved is if the government prints big cheques to all Americans so they really can spend the money. Other then that we need debts to be paid down, savings replenished and a growing economy.