Zeev's Turnips Patch-No Politics (ZEEV)

[Sherlock356]

Last week Merrill said to buy bonds and dump stocks. One of my favorite technicians was on CNBC last week (John Bollinger) showing some very interesting charts of money supply growth and commodity prices. He predicted major risk to bond valuations at these levels. He also thought equities had short term upside and would then be in a multi year trading range. He said the risks were now tilted towards the emergence of inflation....not deflation. If John is right, Merrill's call will lose their clients a lot of money IMO. Also if you look historically at periods of mild inflation and rising interest rates...small cap stocks tend to do well IMO. Food for thought.