Sector Investing

[gtober]

The last period of true stagflation was the early 70's. The effects on the market were devastating. And, again, brought on by an oil shock. Funny how history is always in a position to repeat itself.

I would consider the possibility of stagflation to be quite low, however, as the FED has a lot of interest rate room.

We just dicussed this on AnderL's thread here.

http://www.investorshub.com/boards/board.asp?board_id=3736

I don't want to think what will happen to housing - or the economy - if high inflation takes hold and FED Funds go to say, even 7.5%.