I did an interview with Wally Forbes a few weeks ago — its on Forbes.com, along with specific stock recommendations.
Here’s an excerpt:
We recently put out a commentary that quotes Ned Davis’ book Being Right or Making Money that originally came out in ’91. Our comments stimulated a lot of e-mails from people telling me, “The Fed is debasing the currency. And the stimulus is bad. And zero interest rates are bad.”
And there’s every reason why the world is going to hell in a handbasket. But meanwhile the market is up 80% plus over the past two year, and staying up there. So if you want to be an armchair policy wonk, go ahead. But if your job is to identify opportunities and risks in the market, you have to recognize the line that I think I used in the commentary: When the Fed is pouring fuel on the fire, when they send their minions out to discuss the Greenspan put, some people rush for the fire hoses.
But my job is to go grab some marshmallows and sticks and head over to the Boy Scout jamboree campfire. If your job is a policy analyst, well that’s a different situation. But if you’re an asset manager, you can’t fight the tape constantly. You have to recognize when massive Federal Reserve liquidity is going to goose the market. But I’m not going to argue with people who say this ends badly. Hey, every bull market eventually ends badly. You know, I can’t tell you if it’s a 25% correction or down 1,000 [points]. But you know what? You’ll have plenty of time to make that decision. Right now, as long as they are giving us an opportunity to make some hay, you have to participate while the sun is shining.
Wally is always a fun interview.
Stocks To Ride Ben’s Latest Bubble