Depression in the USA - Deflation verus Inflation

[Aaron]

I'm not sure what this thread is doing in the ASX forum - but whatever, this article by John Mauldin is worth reading by those interested in the USA markets.
http://www.mauldineconomics.com/fron...things-bearish

Even the heading is wrong for the ASX thread. I post here because it has inflation and deflation in the title. I was expecting deflation but have got massive asset price inflation. Just speculating on where things might be headed.

Thanks for the link, interesting. John Mauldin is always pretty reasonable.

I have always wondered about the efficient market hypothesis. If everyone is investing in passive index funds or trading on technical analysis then I can't see how markets could be efficient. Everyone investing in ETF's will make the index they invest in go up resulting in good gains that attracts more money in a virtuous upward cycle. A bit like real estate back in 2007 and possibly in Auckland today.

I have no clue but am assuming this time is not different and that there will be an opportunity to invest at lower prices and better yields at some stage in the future. Hopefully we have a market crash before a currency crisis.