Saturday, March 11, 2006

Here’s a Graphical Picture and Discussion of our Household Investments

Here's our distribution of investment assets. As I said in my intro, we save aggressively and invest moderately. The house equity represents three houses. The government bonds are collecting about 4.7+%. I'm essentially waiting for a market correction before I increase our position in equities. Commodities is a bit of a misnomer. The following components make up our position in "commodities:"

a) BHP Billiton (BHP)
b) Rio Tinto (RTP)
c) Natural Resources Fund (UMESX)
d) Deutche Bank Commodities (DBC)
e) Pimco Commodies (PCRDX)
f) Gold (GLD)

I'm a bit heavy into commodities because I believe inflation will continue to be a problem. I view the yield curve as an indicator for inflation. In my opinion, the dip or inversion in the yield curve represents a short term decrease in our rate of inflation. However, in my opinion, this short term decrease is just that SHORT TERM.

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