Thoughts from the Frontline

Inflation Rhythms

By John Mauldin

March 22, 2002

Rhythm Investing
Inflation Around the Corner?
Slicing and Dicing the CPI
Shoulda-Woulda-Coulda
High Yield Profits
Trade War Cannons

"History does not repeat itself," said Mark Twain, "It rhymes." That observation has a great deal of truth in it. Lately, however, economic history has been more like the cacophonous poetry of the Beatnik generation than the smooth resonating sounds of classic iambic pentameter.

Today we are going to look at interest rates, and see if we can find a rhyme or a reason as to why long term rates are going up and bonds are taking a dive. We'll look at what this means for the economic recovery, and see if we can find some profit potential.

There is a real correlation between interest rates and inflation, or at least inflation expectations. This makes sense,…

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