E.D.Hart

Three Solid Investment Themes

Regarding our current maelstrom, I hear a lot of comparisons to the 30s, and also to Wiemar Germany, as well as to Japan in the 90's.

Less often stated until very recently is the comparison of our malady to the US in the 70's and its stagflation--lower growth, and higher inflation. Is it just me, or does it seem more likely than not that we will have some level of lower growth and higher inflation going forward, although we know not the extent to which.

Therefore, it might be prudent to position ones portfolio toward those plays that worked in the 70's---energy, gold, and oil service stocks.

I agree with Dr. Leeb and his three themes--inflation protection (gold/silver), energy, and international diversification. This seems to be just common sense. But not necessarily commonly believed.

What the Hedge Funds' Bad September Could Mean for Markets

Reasearch Published by Morningstar demonstrates that "on the whole, hedge funds do statistically even with the universe of long only mutual funds" before fees, after fees of course, on average, they are losers, relative to long only mutual funds.

I sense a reality check <wink back at ya>

Post-Bailout Investing: The Big Picture

Thanks Chris, great stuff.

Risk Management in Trending Markets

I wish all SA writers were as lucid and straightforward. Excellent article.

The Dead Cat Returns to Earth

Regarding Socialism: America is the only country where socialism is for the rich, not the poor.

The Ongoing Challenge of Inflation Momentum

This commnet is curious to me: "Nonetheless, if you've owned commodities for some time, it's a good time to start thinking about rebalancing from winners to losers on an asset class level. No, we're not sure that bottoms in stocks, junk and REITs are imminent, but if you have a long-term horizon you could do a lot worse by starting tobuy, albeit cautiously and with an eye on time diversifying purchases over the coming months and perhaps even years."

It seems to me that if inflation is accelerating, which is the main premise of this article, that you could do a lot worse than letting your winners run in commodities, and cutting your losses in financials and bonds.

It seems to me that we can only see interest rates go up from here, after the election. Who wants to cut exposure to the only asset class that is outperforming in a rising inflationary environment?

Rebalancing asset class exposure should not be done blindly, or as automatic process of so called "risk reduction", but only in response to ecess valuation, and changing economic fundamentals.