07-Mar-09 
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Special Bulletin, #13

By Richard J. Maybury
Copyright © 2009 by Henry Madison Research, Inc.
www.richardmaybury.com
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07-Mar-09

I created some confusion in my remarks about PRPFX at the top of page 5 in the March EWR.

On page 4, I said the economic calamity began in August 2007. I should have repeated this on page 5 when I said PRPFX is down 4%.

It's down 4% from the beginning of the crisis, not from it's high.

I believe the crisis has a built-in cycle: inflation, deflation, inflation, etc. PRPFX has a bias in favor of inflation, so in the inflationary part of the cycle, it builds profits which offset losses in the deflations.

We are presently in the deflationary part of the cycle.

I think PRPFX will continue averaging out okay for the rest of the crisis, which will probably last years, but we will naturally be uncomfortable in the deflationary periods and, probably, unrealistically enthusiastic in the inflations.

I'm sorry I can't suggest another plan in which I have more faith. I'm always on the lookout for one.

Sincerely,

--Richard Maybury

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