I myself agree with Warren Buffet of a long recession. What most cheerleaders are not telling folks is that the boom we just came off of was caused by the housing boom. Jobs from financing homes, furnishing homes, building homes, selling homes, etc.
Now that these jobs are shrinking as well as wall street jobs and lets not forget the ATM in the front room that is gone. These all make for some very long slowdowns.
What I find fascinating is that while we are in a recession the S%P is about 22 p/e while China is growing like crazy and they have an average p/e of 21. Which one would you invest in?
Asia is aggressively gobbling up and locking in deals around the globe for natural resources to keep this expansion booming. This will help a portfolio of natural resources.
The wild card in all of this is when the feds will be forced to bite the bullet and begin the slow rise of interest rates. The bitter sweet that is about to follow will be devastating for most. This will force a slower recovery while at the same time higher commodity prices along the way.
Interesting times for sure
1 comment:
Hi Dell,
By the actions of Wall Street this week, do you think you are out of the woods yet?
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