Economic Review and Market Outlook Despite an unfolding economic slowdown, a market that is long overdue for a decline, and a real estate market that continues to deteriorate, the stock markets continue to do OK. In the past few months I have come to believe that the stock markets are benefiting from investors who are fleeing real estate and need another place to put their money.
Messages from the Bond Markets The fact that so many people expect interest rates to be on the rise is a contrarian’s delight. When it comes to investments, the biggest crowd is almost always wrong. The brave souls willing to buy their straw hats in winter normally get the best bargains. Listen to news reports, read articles by financial pundits and talk to people you know
Diversification: When It Doesn’t Work The most common description of diversification is to not keep all of your eggs in one basket. However, Andrew Carnegie, steel magnate of the late 1800s, had a very different philosophy regarding diversification, “keep all your eggs in one basket and then watch that basket very carefully.” Carnegie was mighty successful, having made so much money by age 65 that