Welcome to the Vitus Capital Blog!
Notes to myself, possibly of interest to others.
-- Bill Northlich

Wednesday, March 31, 2010

Rosenberg Daily - Do what worked in the '30's

It is very important not to get caught up in the euphoria in the business media and the mania in the financial markets. The most dangerous thing anyone can do right now is extrapolate the stimulus-led bounce of the past year into the future...
[As was the case in the 1930's] the investors who end up succeeding are not the ones who are able to play the flashy bear market rallies but the ones who opt for strategies that minimize volatility and optimize risk-adjusted returns. Income, whether it be from paper assets (bonds, dividends) or hard assets (oil and gas royalties, REITs), is going to emerge as king in an environment where the primary trend is one of deflation, which is indeed the case as private sector credit contracts.

No comments:

Post a Comment