Do you really like a particular stock? Put 10% or so of your portfolio on it. Make the idea count … Good [investment] ideas should not be diversified away into meaningless oblivion.
Bernanke and company are trying to reflate the economy with almost stated objective of inflation at 2 percent and higher in order to provide some type of safety margin for a future recession. That’s where they want to go.
Bond investors are the vampires of the investment world. They love decay, recession – anything that leads to low inflation and the protection of the real value of their loans.
Slow growth and inflation have a tendency to accompany large deficits and increasing debt as a percentage of GDP.
Human nature means that institutions at some point lose their sense of mission. That sense of vulnerability drives Pimco.
I am tough but I have a soft side.
Bond investors want growth much like equity investors, and to the extent that too much austerity leads to recession or stagnation then credit spreads widen out – even if a country can print its own currency and write its own cheques.
Ex-Fidelity mutual fund manager Peter Lynch was certainly brilliant in one respect: he knew to get out when the gettin was good.
When you’re underperforming the index, you go home at night and cry in your beer. It’s not fun, but who said this business should be fun. We’re too well paid to hang our heads and say boo hoo.
Bonds despite their ridiculous yields will not easily be threatened with a new bear market.
Finding the best person or the best organization to invest your money is one of the most important financial decisions you’ll ever make.
Both from the standpoint of stocks and bonds, an investor wants to go where the growth is.