Leave it to fellow Real Money columnist Roger Arnold to throw a wet blanket on the party. As the markets continue their positive trajectory, and certain situational names in my portfolio and many others continue to play out positively, Roger had to remind us all yesterday about the potential realities on the horizon. I, for one, am glad he did. It's easy to focus on the positives in micro-land (your own portfolio) and lose sight of the macro picture. It's easy to succumb to what a former colleague of mine described as the cycle of greed and fear.
Roger painted an ugly picture of coming inflation and its long-term effects. I find it difficult to imagine a scenario where we will not be hit with a solid and recurring dose of this. The government printing presses have been on overdrive, our national debt continues to head skyward, and in order to keep the game going, to attract investors, yields have to head much higher. We'll just try and print our way out of it. Thanks, Roger, for the reminder. While it's fine to enjoy the current ride, we do need to be prepared....403 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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