“Anyone who isn’t confused, clearly doesn’t understand the situation.”
-EDWARD R. MURROW, journalist and war correspondent.
INTRODUCTION
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.
INTRODUCTION
KJR. For younger Seattleites,
“There’s a huge layer of the economy unseen in the official data and…unaccounted for on the income statements and balance sheets of most companies. Free digital goods, the sharing economy, and changes in our relationship have already had big effects on our well-being.”
-ERIK BRYNJOLFSSON and ANDREW MCAFEE,
“To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about.”
-Economist FREDERICH HAYEK, as relayed by William White in his Adam Smith prize acceptance speech last month.
“Monetary policy is not a panacea…Most of the policies that support robust economic growth in the long run are outside the province of the central bank.”
-Former Fed chairman, BEN BERNANKE (in the days before he went all-in on Quantitative Easing—QE)
INTRODUCTION
This month’s Guest EVA is,