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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Central Banks have checked into Hotel California

catch22catch22
edited September 2013 in Off-Topic
"But you can never leave....."

Don't forget to check the comments section.

Personal opinion:
Based upon recent comments from various Fed members; after the fact of whether to taper, with the when and where uttered to varying degrees, it should be suggested that all Fed. board members have a joint 30 minute video replay to express all thoughts at one time and together, and be done with the days or weeks later ramblings.
A bit of stability of thinking would be most welcome.

You, of course; may be the judge of such an event.

Comments

  • scott
    edited September 2013
    You cannot base your decisions on what the government says or does or what the Fed says or does. You have an environment where you have continual cross-talk, rumors, intervention and all manner of other noise. What the government or Fed does is certainly going to effect your investments, but on the short term you're going to hear one thing and then another.

    However, while you get the government debate and debate within the Fed, I believe that the government will agree to increase the debt ceiling and the Fed will continue to keep the easiest monetary policy in history going.

    You have to - I think:

    1. Have some degree of investment to protect against inflation. While we continue to hear that there is no inflation, that's just not the case. I think some degree of a portfolio, especially for those in retirement, should be in basic needs (healthcare, staples, etc.) These stocks are richly valued right now because of dividend appeal and other factors, but I think older, conservative investors should have some boring, consistent needs plays (everyone needs TP whether it's hyperinflation or major deflation - KMB, PG, etc.)

    2. Have some degree of belief in what you're investing in. Everyone believes that something will be a long-term theme, whether it be fitness (I guess Nike is doing well) or some aspect of tech or Asia/EM or whatever. I think having a belief in a story or theme makes it easier for someone to hold something over the long term. A variation on "invest in what you know" or Buffett's "buy what you would be comfortable holding if the market closed for 10 years."

    3. Be globally diversified. It's a global economy and I don't think people should have Europe or EM exposure just from US multi-nationals.

  • MaxBialystockMaxBialystock
    Well stated, Scott.
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