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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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