“An economic and investment outlook for 2009, with Merrill Lynch’s Richard Bernstein and Davis Rosenberg.
Source: CNBC, December 11, 2008.
While yesterday's US stock market close was poor, Asia and Europe didn't follow today as debt in Greece, Spain, Portugal, etc... rallied, their CDS narrowed and stocks bounced. The Greek finance minister said January tax revenues came in above expectations and that spending was below target for the month and said "that means the deficit reduction for January is well within what we have promised." The euro is rising in turn. Also helping is the story that Trichet is headed to the European Union leaders summit a day early in order to address Greece's problems even as the Greek finance...
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December 14th, 2008 at 9:17 am
Barry,
Loved the post prior and this one. I am sure you have realized exactly how valuable these blog sites are now. These two guys sound as though they have been reading these blogs for the last year, and are coming to the conclusion that many here have had (rightly or wrongly) for quite some time.
This is also the great difference in this and the great depression. The lack of very timely and very complete information is the big difference. At that time, it seems that things happened TO people, and today’s blogsphere of information allows the individual to have considerably more control and make much more informed decisions. Of course, buying investment advice could change the outcome, but the price of the blogsphere is only your internet connection.
Should be a very interesting year. And I do like the fact that the bloggers on your site, when they don’t agree with me, don’t call me a pimply-faced snotball like I see on some of the other sites.
Merry Christmas.
December 14th, 2008 at 10:01 am
A very good discussion on the inflation/deflation argument. I would have to say that the deflation odds are much more compelling in the short to mid term time frame. I do think that Gold is a good hedge for both scenarios. Does anyone have any opinion on zero coupon bonds. I knew I should have gotten in to them last summer.
December 14th, 2008 at 11:04 am
With all their talk of *buying Treasuries* today with the 10yr yielding 2.5%…..this ought to be a fun post to recall in the not too distant future when the bubble bursts.
They smack of real estate bulls in 2005.
Today it seems like oil bulls, Treasury bears, and people who don’t think the market’s going to rally on an auto bailout and Obama’s zillion dollar stimulus are in very short supply.
December 15th, 2008 at 6:08 pm
@Moss, I found Rosenberg’s “I like gold” comment very interesting, as well as, the only time it is not a good investment is during perfect economic conditions such as the 90’s.
How many Wall Streeters were around when gold was last a good investment (according to Rosenberg).
FYI, he is Canadian.
The Greek