WealthTrack: Why Jim Grant Is Bullish on the Recovery

This week on WealthTrack, Consuelo Mack sits down for a rare one-on-one interview with contrarian market observer and historian James Grant, publisher of the influential newsletter, Grant’s Interest Rate Observer.

They discuss why the economic recovery could be much stronger than anticipated, and the ballooning federal deficit much more damaging. He also shares his views on the Fed, the U.S. dollar, gold, China and some of his personal investing habits.

Grant is erudite, articulate, funny and opinionated - just the right ingredients for an interview not to be missed.

Note: The transcript of this interview is not available yet, but will be posted here as soon as it arrives.

Source: Wealthtrack, October 30, 2009.

Comments

[Dave Wrixon:]

Only one explanation.

The Man is an Idiot.

Nov 03 03:48 AM

[Roger Knights:]

I think he's right that "business" may be better than expected. But the downside bad-balance-sheet undertow remains, and will undercut the recovery.

Nov 03 06:28 AM

[MILESCFA:]

Grant is brilliant, but also typically a bear. Thus I think people are confused by his "bullishness" on the economy. They think a good economy means a good stock market. This is not necessarily true.

Nominal GDP actually grows FASTER during secular Bear markets than it does during secular Bull markets. The reason is that often the secular Bear market experiences inflation, which artificially boosts NOMINAL GDP, but the inflation cause the market (PE) multiple to compress.

I have an instablog (my only one, in fact) that goes into greater detail on this issue, but if Grant is buying gold, it's fairly obvious he's NOT bullish on the stock market.

Nov 03 03:20 PM

[Deehena:]

Prieur -- Please consider first verifying there is a transcript to be read before recommending it. I'm broken-hearted it isn't there to be read but will assume you'll let us know when it is available. Thanks, John

Nov 09 06:35 PM

[SA Editor J...:]

Dear Deehena,

It's available already: seekingalpha.com/artic...

Best,

Judy Weil
SA Editor

Nov 10 08:31 AM