Deflation Economics

I am traveling to Big Sky this weekend, so if there are any readers in Bozeman or on the ski hill drop me a line. . .

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Longtime readers will know that I am a big fan of the work put out by Bridgewater Associates.  In fact, the subtitle of the blog, "Engineering Targeted Returns and Risk" is lifted from one of their research pieces on optimal beta portfolios.  Dalio had an interested interview in Barron’s in which he talked about the "D-process".  Interestingly enough he advocated a position in gold which is up $30 or so today to $940:

Are you a fan of gold?

Yes.

Have you always been?

No.  gold is horrible sometimes and great other times.  But like any other asset class, everybody always should have a piece of it in their portfolio.

What is your view on stocks?

Buying equities and taking on those risking in late 2009, or more likely 2010, will be a great move because equities will be much cheaper than now.  It is going to be a buying opportunity of the century.

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Reese’s The Guru Investor is a good book on stock screening.  While I prefer factor based stock screening ala Portfolio123/FactSet/Clarfi (they give you more flexibility in the exits), this book is well worth the money.

Just pre-ordered, Covel’s updated Trendfollowing book. 

And I thought writing a book was difficult, McGraw Hill decides to drop Bailout Nation…Barry’s response here.  Bizarre.  

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Quote of the day: "Whenever you find yourself on the side of the majority, it is time to pause and reflect." – Mark Twain