David R. Kotok of Cumberland Advisors has an enlightening piece on investing for the rest of this decade. It’s a plainly written discussion backed by knowledgeable research and, importantly, explanation of known fact. Wondering how the Federal Reserve will handle interest rate policy through President Obama’s second term? Kotok has the goods.
I may be guilty of confirmation bias in this, but Kotok’s ideas echo my own and his optimism is mine. The sparks to ignite our next secular bull market and a thriving economy are already lit. (Most obviously: the crash of natural gas prices after the successful introduction of new extraction techniques. The US is a leader in newly-proven natgas reserves. If cheap energy and cheap money don’t spark economic recovery, nothing will.)
At the same time, markets are throwing a fit over the fiscal cliff and Euro debt. I don’t believe the rhetoric about imminent demise, however. I never have. The US has survived far – worse – times, recovered and prospered. It shall again.
(via The Big Picture.)
A Random Stroll 