Legend has it that Richard Nixon once said: “We’re all Keynesians now.” In reality—and most ironically—those words were actually uttered years earlier by the ultimate anti-Keynesian economist, Milton Friedman. However, former President Nixon did riff off of this when he declared, after removing the US from the gold standard in 1971, “I’m now a Keynesian in economics.” Unsurprisingly, this turned out to be bad news for the American public as Mr. Nixon’s conversion unleashed a decade of stagnation and inflation. As a result, this wrenching experience produced a new term that the disciples of Keynes had previously believed was impossible: stagflation.
“The world currently has an excess of every manufactured good.”
-JOHANN RUPERT, CEO of luxury consumer products company, Richemont.
“Clearly, our consumers’ budgets are pinched.”
-Dollar General CEO, TODD VASOS
First of all, Evergreen would like to wish all of its clients,
“The more certain something is, the less likely it is to be profitable.”
-JIM ROGERS, acclaimed investor and former partner of George Soros
“You can’t buy what is popular and do well.”
“Anyone who isn’t confused, clearly doesn’t understand the situation.”
-EDWARD R. MURROW, journalist and war correspondent.
In the cross-hairs of cross-currents. One of our main objectives in publishing the Evergreen Virtual Advisor (EVA) is to offer readers both our views and those that contradict them.
“Would higher inflation lead to stronger equity market returns? Here the answer is a simple no. History has shown time and again that accelerating inflation leads to lower P/Es, and vice versa.”
-LOUIS GAVE, founder Gavekal Research.
KJR. For younger Seattleites,