February 28, 2013

Investors not realistic in their expectations


At the core of my concern is that a global economy built on a foundation of excessive monetary easing is one of low quality, decaying fundamentals and not likely to be effective or self-sustaining.

To me investors are not being realistic in their expectations (and almost magical thinking) that an aggressive printing press can relieve and trump the profound challenges and headwinds to global growth without any negative consequences.

I remain concerned that much of the current investor optimism expressed in a rising stock market is not consistent with the underlying economic and profit data.

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