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Varchild2008 (84.41)

How to Fall in Love with HIGH INFLATION!

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August 19, 2008 – Comments (2) | RELATED TICKERS: PBT , SID , POT

Yaaay!  It's High Inflation day!  Hip hip hooray!

Let me stop boring you to death with a simple point to make:

Let's say you have a portfolio of 6 stocks.
My suggestion?

3 Stocks =  Commodities or Agriculture or anything that loves inflation
3 Stocks =  Anything your heart desires in "I hate Inflation" section of the stock market.

Now.. Try to balance the share volumes in all 6 stocks as closely as you can.
It's not easy and may not be possible given the wide differences between share prices per stock.

But... The real goal is if you have an equal share volume of Inflationary Stocks versus Deflationary Stocks then generally (not always) but generally you will reduce the impact of any major sell-offs in the stock market.

With today's inflation report I immediately bought more shares of my OIL and NAT GAS stock as well as my STEEL stock.

2 Comments – Post Your Own

#1) On August 19, 2008 at 12:01 PM, wrote:

I've been in love with inflation day since june.  My portfolio consistently outperforms the Dow.  Why not bet on the indexes underperforming until we get some intellegent leaders in the White House, Wall Street, or honest CEO's in the failing commercial banking and financing industries? 

 "So Don't Be Sad, Cause 2 out of 3 Aint Bad."  -Meatloaf

andrew

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#2) On August 19, 2008 at 1:03 PM, Varchild2008 (84.41) wrote:

Absolutely Drew!

It's what I call a Bear Market Portfolio.  It's all about finding what works given the economic circumstances and right now getting heavy in the Inflationary market is what works.

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