“Europe is headed for a depression if it doesn’t figure out how to reform.”  
-JOHN MAULDIN, SPEAKING TODAY AT HIS ANNUAL STRATEGIC INVESTMENT CONFERENCE IN CARLSBAD, CALIFORNIA

POINTS TO PONDER

1.  Recent EVAs have noted that growth in US after-inflation (real) disposable income is at recession-type levels.  Looking back over a longer time frame shows a similarly discouraging pattern.

“We can actually manufacture as cheaply or cheaper here in the US than we can in China.”
-DAVID ROBERTS, CEO OF INDUSTRIAL CONGLOMERATE, CARLYLE, REFERRING TO ITS TIRE OPERATION

“The discovery and development of North America’s shale resources has the potential to be the most remarkable source of economic growth and prosperity that any of us are likely to encounter in our lifetimes.”
-US STEEL CEO,

“The idea that Chinese capitalism provides a blueprint for the rest of the world economy is an absurd exaggeration.”
–KENNETH ROGOFF, CO-AUTHOR OF THE EPIC WORK ON FINANCIAL BUBBLES, “THIS TIME IS DIFFERENT”.

APRIL 20TH, EVA

In a recent EVA, I explained the sequence we follow for this publication.

“Risk is most dangerous when it is least apparent and least dangerous when it is most apparent.” 
-FINANCIAL NEWSLETTER WRITER EXTRAORDINAIRE, JAMES GRANT

POINTS TO PONDER

1. Many pundits believe stocks are on the cusp of a new bull market.  However, the liftoff point for the last two times when stock prices roughly doubled (2003 and 2009) coincided with high cash levels relative to overall market value. 

“Communism creates shortages, capitalism creates surpluses.”
-FORBES COLUMNIST AND NOTED ECONOMIST, GARY SHILLING

APRIL 6TH, EVA

Is risk-off back on?  It’s that time of the month many EVA readers look forward to—an issue that I don’t actually write!  This week’s “guest” EVA fulfills a commitment I made a few weeks ago to run an essay from either John Mauldin or Simon Hunt.