In the middle of March I had an inkling that all was not well with my thinking. My thinking was that the market would pullback and that the global economy would slow down. Well I was wrong, and in the referenced blog entry I talked about what my head told me, and what my gut was telling me. It seems that my gut was telling me the right thing. As a result I have become a bear in bull’s clothing. This means I grudgingly accept the bull rally, but I don’t like it one bit!
The problem is inflation and getting it under control. Yes we can argue about how to measure inflation, but the reality is that there is inflation and I see it everyday in our pocket books. Low inflation, or virtually no inflation is good for the economy because it keeps the economy efficient. I had a gut feeling that Bernake was an inflation dove and cared more about the well being of the individual people.
