I can't believe that I haven't posted in nearly 3 months! What has happened in the interim? Well, I last posted about the Ponzi scheme that the State of California planned on perpetrating against its citizens. Since then a lot of other Ponzi schemes have come to light of various managers who had been living on borrowed time. Financial firms continue to deleverage and as I predicted, the words "mark-to-market" is now known to every man. Interestingly, there seems to be a glimmer of hope in the economic data that the worst is over.
For those who invest and make a living off of investing, this is the time to lean in. Things could get worse, but there are so many powerful forces at work trying to make things better. In my opinion it is a tough time to bet against the capitalistic spirit. This is the time to push forward and invest, create, and prepare to ride the next wave. It will come and when it does it will be violent.
The smart money has been busy picking up gems from the dead. There are plenty of people hurting in every industry right now and if the past is any predictor of the future, the cycle will refresh and lots of folks will be kicking themselves that they didn't take advantage of the unique investing climate we are in. Good luck.
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