Too much news

Commentary January 13, 2010 at 07:00 PM
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As usual, I've just read Monday's Barron's, which contained an unusual number of prognostications, including those from John Mauldin and two other respected financial advisors. Like most planners, I've also been reading various other publications, including parts of the FPA edition of January's Money, and therefore have lots of conflicts roiling around in my brain. Ye gods but life was simpler before 2008, wasn't it?

Now, we have to concentrate of flexibility, right? If I had to summarize all of the expert information, it would boil down to these thoughts:

1. There are more opportunities for growth in China and parts of Asia.

2. More and more people are investing there instead of here.

3. There is still a lot of cash sitting on the sidelines here.

4. There may be a 10% correction in 2010 (not only do the Barron's seers suggest this, but so do Bill Gross and Mohamed El-Erian of Allianz/PIMCO, who have been reading the tea leaves again.)

5. The high-yield party is over. (But is it over? There are contrary opinions here, and if the market runs well in the first quarter, HYs may still be good, yes?)

6. Experts are not always right. One thing that is probably exactly right is flexibility. We must now and forevermore guard against hardening of the arteries in our investment brains.

Have a great week.

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