If you missed it, you need to read Paul Farrell’s “All wrong! Bernanke, Paulson, Greenspan.” Not that this piece will help you much with your investing efforts, it’s the media circus at its best. Read it for entertainment only.
Yes, it’s hard to believe that Paul, who has forever touted the Buy-and-Hold the coffeehouse and gone-fishing portfolios, is now forecasting a bear recession. His solution is “bonds” based on the fact that history suggests a rally.
Hmm, based on his past writings, I was under the impression that you should hold his coffeehouse portfolios forever. That it was a solution for all times, no matter if bull or bear market. What happened?
From my vantage point, it’s the usual media hype of useless information at its finest. As I wrote in Thursday’s blog, we may be facing a changing headwind, but the investments of choice can’t yet be determined.
I believe it’s a better approach to be rational in your decisions and make changes when appropriate (and trends can be established) as opposed to writing articles that do nothing but spread fear and uncertainty to the investing public.
Comments 3
Lazy portfolios aside, when read for what it’s worth, I think the article hits on something that’s been brewing for about 15 years now. Namely, that the American investor is becoming increasingly dependant, and reliant, on the Fed to protect profits, and reduce losses. Whether the vehicle be stocks, bonds, or real estate.
We’ve become a serial boom society and I don’t see the next boom to ride, unless maybe it’s gold. It is time for a hangover.
For the life of me I just can’t figure out Paulson’s true worth. That guy must be a great time at parties or something…..
G.H.
Yes, it’s hard tobelieve that the very moment an indvidual runs into financial problems, the solution is some form of government bailout. What ever happend to taking responsibility for our own actions?
Ulli…
Well, I think the rub here is this: if it were just individuals (i.e.; the “little guy”), I don’t think it would have turned from “everything’s OK”, to “ensuring stable markets.”
Although I myself don’t believe that the effected real estate speculators are great in number (like in 1929 the total number of speculators in the stock market was a small percentage of the population), I do believe that we will learn sometime later on that more “high-net-worth” individuals and institutions have had their proverbial tails handed to them than is currently known.
Take a few bucks away from the average guy and it won’t impact Wal*Mart a whole lot, but change the spending habits of the well-to-do and that will start showing up with greater pronounciation.
At this point this is just my opinion of course….
G.H.