I just heard Doug Kass say on Kudlow and Company that he doesn't think investors should be buying stocks for the long run right now because we're in store for a long, slow, wrenching downturn and stock-bleed similar to that of the late '60s and '70s.
Here's a question for the readers: what do you think? On point? Or in left field?
-AvgJoe
Subscribe!
S&P Supports Amazon.com… Pullback an Opportunity? (AMZN)
37 minutes ago
2 comments:
I don't think the issue is the stock market per se, I think the issue is inflation. On an absolute basis I think the stock market will start to recover in the next few months, but on an inflation adjusted basis, I think most US dollar based securities are going to be losers for some time. Maybe the next 5-10 years or longer. What the dollar needs is a course correction, but as long as the fed steps in to lower interest rates every time it looks like growth is slowing down, it is never going to get it.
Right now, my money is in commodities and foreign currency based securities.
It sure looks that way to me. I don't see any good way of resolving the housing problem any time soon, and credit is going to contract. Unfortunately, it all looks a lot like Japan in the 90's.
Post a Comment