Keith Springer Quoted in CNBC Talk of Deflation

Keith Springer President of Capital Financial Advisory Services in Sacramento California Quoted in CNBC Talk of Deflation

Deflation Fears Send Investors Searching for Bonds, Dividends

SACRAMENTO, Calif. (MMD Newswire) May 21, 2010 -- Keith Springer provides in-depth analysis on the effects of deflation on the current economic environment.

According to CNBC reporter Jeff Cox, "Tuesday's producer prices report showing a drop of 0.1 percent, coupled with a sharp decline in building permits, reinforced the notion that the recovery could be slow going from here on. Add in the debt problems from Greece and its neighbors, the sharp decline of the euro and corresponding rise of the dollar, and the withdrawal of stimulus and quantitative easing from the Federal Reserve, and the equation isn't hard to solve for some investors. Deflation combines slow economic growth with no inflation, which is generally bad for stocks and good for bonds."

"Short-term you've got a little bit left in stocks," says Keith Springer, president of Capital Financial Advisory Services in Sacramento, Calif. "Ultimately in a deflationary environment bonds are the place to be. The pros see deflation. What do you do in a low-interest environment? You buy bonds."

"Everyone thinks the Treasury auctions are going to fail. That's why they're exceeding estimates," Springer says. "I'm not a fan of Treasurys. I don't think there's enough return. But if you're a sovereign nation with trillions in liquidity you've got to put your money somewhere, so they buy Treasurys."

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Keith Springer, President of Capital Financial Advisory Services, a SEC Registered Investment Advisory Firm, frequently provides commentary and analysis for various global and national media outlets. He has developed a proprietary process for successfully building tax-efficient retirement portfolios and has been providing specialty wealth management services for over 25 years.