The Big Picture
There’s one thing in common this crisis has with all other crises in the past – and that is:
“It will end”.
Now is the time to start to visualize what the other side of the economic “trough” will look like. In other words, the economy is declining now, it will reach bottom at some point, then start to expand again-will the expansion phase differ from those in the past? Yes, it will differ from recoveries in the past based upon the historic amount of governmental stimulus activities. We expect much higher inflation and, perhaps, so high that our clients purchasing power will be seriously eroded – not as bad as Zimbabwe as explained in the following “Facts That Make a Difference” but worrisome nevertheless.
We are busy studying time periods in the past when the U.S. was subjected to high inflation like the late 1970’s. We intend to identify investments and investment strategies that were most successful during that time period – and report that information to you in The Weekly Commentary in the future. We are excited about this project since many of the investments that worked so well in the 1970’s are inexpensive right now and now is the time to start adding them to your portfolio. More information to come.
Comments