Something for Underneath your Hat: Faber

Christophe

Villedary (click on image)

If you were to put anything under your hat today, I would recommend that you partake of this gem of a broadcast from Bloomberg. It has both Marc Faber and Charlie Maxwell in it ~~ http://tinyurl.com/3g359f:

In listening to this broadcast, I felt that a few of my ruminations as I try to make sense of all of this 'stuff' were affirmed . . .

• the probability of "L-bottom" recession;
• that CB's efforts are small relative to the scale of of the asset deflation;
• the scale of our commodity consumption and the linkage to that of China's;
• that deflation would be with us prior to inflation.

I also appreciated his reflection on comparing S&P earnings yields with that of junk bonds (rather than traditional corporate bonds). While I have far to go in terms of thinking facilely about asset allocations, I'm becoming more comfortable with understanding the movements among asset classes in addition to the effects of currency disparities. That comfort is centered on nothing more than a rudimentary (if that understanding), but even having cognition of these issues puts me a little further up on the learning curve than I used to be.