Author Archives: Credit Flow Investor

I enjoy this analogy of calculated risk to an austerity slope.  How will the economy grow with austerity? It is a very uncertain time right now. Cash is best except for core position in 0 coupon bonds. See calculated risk: … Continue reading →

As I consider that US and all others are entering ‘Japanization’ also known as balance sheet recession with cash flow, UST bonds are the safest long term investment. Over the years this yields a coupon and capital gains with the … Continue reading →

While early indications are risk ‘on’, I still remain in long bonds (core position) and cash. Seems Q4 GDP will be weak so until a clear trend presents itself risk capital for me is in cash. See this link: http://advisorperspectives.com/dshort/guest/John-Carlucci-Best-Indicator-Ever-Update.php … Continue reading →

Clearly net worth has come under attack.  The ‘wealth’ effect strategy for managing the economy is nearing an end. The gap has widened considerably with the median wealth down by 40% and the top by at most 10%.  

As deposit rates are low at 0.3%, demand for gov’t bonds remains strong. They can be held for many many years and will continue to outperform asset classes long term. Zero coupon long gov’t bonds have continued to beat all … Continue reading →

I have remade credit flow investor into a blog. My original analysis holds true and long-term US treasuries have done well over the past 3 years.  Notice now how USD is also rallying due to USD being the worst currency … Continue reading →

<http://jugglingdynamite.com/2012/11/10/a-plutocrat-calls-bs-on-his-peer-group/ See absolute demand index has fallen 10 points. See also rail traffic on pragcap.com. Gas buddy keeps falling so demand is falling… http://www.consumerindexes.com/ We are now beyond election and sandy but still demand is depressed. I think baby boomers … Continue reading →