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Fox Business News’ David Asman and Liz Claman interviewed Jim Rogers today regarding his expectations for the markets.
Rogers said we have substantial tax increases in store next year. He also stated we’ve had recessions every 4-6 years since the beginning of the republic. He added that next year is four to six years so we’re overdue. Rogers stated recessions have always happened and happened for different reasons.
Rogers warned about thinking it’s different this time.
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James Grant, founder of Grant’s Interest Rate Observer and author of Mr. Market Miscalculates: The Bubble Years and Beyond
Grant said, “we should call this what it is, it is market manipulation. That is what we call it in the private sector.” Grant added, “what the Fed is doing is manhandling the structure of interest rates to the end of achieving of what it takes to be desirable macro outcomes.”
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Jeremy Grantham has released his latest investment letter which he dubs, “The Longest Quarterly Letter Ever.” In it, he blends philosophy with sage investment observations. It is definitely one of the superior reads in the world of investing.
Grantham opines early on,
The market is gloriously inefficient and wanders far from fair price but eventually, after breaking your heart and your patience (and, for professionals, those of their clients too), it will go back to fair value. Your task is to survive until that happens. Here’s how.
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GMO’s Jeremy Grantham recently commented in his latest letter (August 2011) that his firm is modestly buying equities for the first time since mid-2009.
Despite his view that the S&P 500 is worth a mere 950, Grantham is of the opinion that stocks (in some select areas) offer a better risk/reward than the available alternatives (mainly fixed income).
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Gary Shilling may be right about an oncoming recession. He’s been saying it for awhile now. Shilling figures the odds are greater than 50/50 that we’ll see an economic downturn within 12 months. Jonathan Burton at Marketwatch reports on the five moves Shilling believes investors should make now.
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Gary Shilling sees Chinese demand for commodities waning, leading to a collapse of the bubble in the price of oil and base metals. Shilling says commodity prices have been further fueled by speculators and Exchange-Traded Funds (ETFs).
Shilling stated, “Talk about bubbles! If commodities haven’t been in one, I don’t know what a bubble looks like. And I’ve studied a lot of them over the years and concentrated on predicting their demises.”
Source: Moneynews.com
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Timber May Be the Best Investment
June 21, 2011Robert Smith, writing for Oregon Business, highlights the attributes of timber as an investment class. Smith points out that worldwide demand, especially from Asian countries, is contributing to pricing power for wood products derived from timber. Smith states, “Worldwide demand for softwood lumber rose 18% in 2010, continuing a trend that started in early 2009. In the first quarter [...]