Thoughts Concerning Deflation

I have written a variety of posts concerning deflation and “deflationary pressures” as I continue to believe that deflationary conditions are on the horizon, and that such deflationary conditions will cause, as well as accompany, inordinate economic hardship.  [note: to clarify, for purposes of this discussion, when I mention “deflation” I am referring to the …

Read more

Would Deflation Be Beneficial?

The topic of deflation is one that I feel lacks recognition, especially since my analyses indicate that deflation is on the horizon and that many signs of “deflationary pressures” exist,  some of which I wrote of in the post of  June 10, “The Prospect Of Deflation.” [note: to clarify, for purposes of this discussion, when …

Read more

The Prospect Of Deflation

Deflation and the potential for such a condition to develop is currently a topic of paramount importance, for a variety of reasons.  [note: to clarify, for purposes of this discussion, when I mention “deflation” I am referring to the CPI going below zero.] As one can see in the various professional economic forecasts mentioned in this …

Read more

Profiting From Deflation?

Deflation has been a popular topic lately. Some have recently expressed that deflation can be a scenario from which one can remain unimpacted, or will profit from.   Examples include a August 7-8 Wall Street Journal article titled “How to Beat Deflation-And Even Profit From It.” A recent article by Robert Prechter Jr. in the August …

Read more

Is Deflation A Benefit?

Lately I have seen a few articles that have openly stated that deflation would be a “positive” for individuals.  There are various reasons given for this conclusion. One of the reasons that has been given is that deflation would lower the price of goods, and thereby increase purchasing power. My thought on the matter is …

Read more

P/E Ratios and Inflation / Deflation

I recently came across an interesting chart titled “Relationship Of Inflation and Price/Earnings Ratios (1900-2008).”  It is from Crestmont Research and can be found at this link: http://www.crestmontresearch.com/pdfs/Stock%20Inflation%20&%20PE.pdf It shows the effect of inflation and deflation (as defined by the CPI) on the P/E Ratio. I think that it is worth looking at for a variety …

Read more