25 years in Sibera. In the late 1980s, I became convinced the Japanese stock and real estate markets were engulfed in one of the biggest speculative manias in world history. It was the first time I started using the B-word—as in “bubble”—in my conversations with clients. Some readers may remember that the most egregious example of that era’s insanity was the alleged valuation of the Imperial Palace in Tokyo being worth more than all the property in California.
By David Hay
Don’t ask, don’t tell. Lately, I’ve begun to pose an uncomfortable question to both my investment professional friends (I still have a few) and to a handful of clients: What happens when the stock market quits going up? For now, let’s ignore the more unsettling notion of the impact of a deep correction and just focus on an extended sideways scenario.
Once a month, we publish EVA in the Evergreen Exchange format. This issue should be a particularly unique exchange of ideas, because Tyler Hay, Jeff Eulberg, and David Hay each selected an influential investment mind whose approach they admire. Aside from explaining the motivation for the individual they chose to write about, each author will also recap the current outlook of their choice.
“This is a brand new world where money and bond markets are broken and the time value of money in some cases is being totally violated.”
– Leading economist, David Rosenberg
Special message: Before we get into the main text of this month’s full-length edition, I wanted to mention that we’ve had a format change.