I am touring on my Harley in Arizona and not focussed on markets, but yesterday’s Wall Street Journal headline “Subprime Bonds are Back” has me worried. Subtitle: As economy recovers, long-term investors willing to take on more risks.’
Bloomberg today noted the rebound in corporate profitability is at record preportions. Investor’s are inclined to forget earnings reported are now history.
All is pretty much good and consistent with what I predicted in my new book ‘A Maverick Investor’s Guidebook’ BUT remember the manuscript was written almost a year ago. I smell another correction on the way so heads up.
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About Mal Spooner
Malvin Spooner is a veteran money manager, former CEO of award-winning investment fund management boutique he founded. He recently authored A Maverick Investor's Guidebook which blends his experience touring across the heartland in the United States with valuable investing tips and stories. He has been quoted and published for many years in business journals, newspapers and has been featured on many television programs over his career. An avid motorcycle enthusiast, and known across Canada as a part-time musician performing rock ‘n’ roll for charity, Mal is known for his candour and non-traditional (‘maverick’) thinking when discussing financial markets. His previous book published by Insomniac Press — Resources Rock: How to Invest in the Next Global Boom in Natural Resources which he authored with Pamela Clark — predicted the resources boom back in early 2004.
I am touring on my Harley in Arizona and not focussed on markets, but yesterday’s Wall Street Journal headline “Subprime Bonds are Back” has me worried. Subtitle: As economy recovers, long-term investors willing to take on more risks.’
Mal, I also took notice of that article this past weekend and it proves that investors and Wall Street have short memories. I’ve just finished reading my 3rd or 4th book on the credit crises, collapse of Bear and Lehman. You would think people have learned a valuable lesson on greed, quality of investments and of course LEVERAGE. Obviously not. Sad thing is, we all know who will be blamed for supplying a product that there is an appetite for when people start to lose money.
Enjoy your ride, still not warm enough here.
Cheers
Nick