Comments (3)

  1. LOUIS SCHULTZ says:

    very interesting seeing passive investing almost equaling active investing especially after the “december debacle” of almost a 20% correction due to cascading computer sell programs. wouldn’t be surprised to see a repeat since computers aren’t concerned with food, clothing or shelter.

  2. Don Braswell says:

    1) The USA market barely hit -20%. Other world markets have hit -30% over the past 2 years, so this was hardly a dip only in the USA, it was a dip that finally happened, however briefly in the USA; and the dip was less in severity and longevity than the world (see EWY for Korea; INDA for india; and ILF for latin America performance).
    2) it is doubtful that the Usa market would have been steady without the buybacks. the buybacks masked a much reduced total earnings for the s&P 500, even in the face of increasing multiples of P/E. Of course, this year buybacks are “bad” (just ask congress); they have to pay 2% interest for buybacks; they have to re-finance old buybacks from 0% interest to 2% interest; AND their buybacks have all lost money (just ask apple if it was a good use of their money). So, we are left buying what we can, and waiting for the next shoe to drop. Me Thinks that we are just the least bad horse in the lot, so folks pile back into our equities as the “Blue Chip of the World” kind of thing. Our S&P500 is the world’s “must own” stocks for their portfolios.

  3. I would love to hear DAVID’s commentary regarding his buy for gold, and his neutral for em stocks. With corresponding commentary on the dollar. I would expect both buy gold and em, unless you are a fan of the long usd and gold thesis at this time.

    Just seems odd with some of the tremendous em bargains in the world(maybe more individual stocks vs entire markets?).

    My near term OUTlook has shifted from expecting the usd to turn bearish(60/40), to expecting the dollar to rally(30/70), I certainly could see gold rally against all currencies, but hate owning it in usd.

    Thanks,

    Andrew l jager

    Ps, your site(or my phone) is only allowing me to type in all caps.

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