Last Thursday, November 12, 2009, I had the opportunity to hear, Economist, Author of three books, and Dallas resident, John Mauldin, http://www.johnmauldin.com/ 
.
John is well-known for a regular electronic communication he publishes to 1.5 million of his closest friends.
A summary for John’s thoughts are as follows:
- Unemployment is going higher and will not abate until late 2010
- Interest rates will stay low for the forseeable future
- We might have a double dip, or W, recession
- Governmental structure will change due to the unemployment rate
As I left the conference in which John was speaking, thinking back to our September 3rd post, An Interesting Time with W. Michael Cox, Former Chief Economist of the Dallas Fed, in which Michael Cox had almost the exact opposite views, I understand why the investment industry is so confusing.
These are two very smart, well-known and followed, gurus of Economic’s, saying the exact opposite. How Does that happen? That’s what makes it so confusing at times. One key take away from our analysis, is that it re-confirms the need to have a good investment plan and stick with it. Certainly listening to the guru’s is important, but a good investment plan will work if either scenario materializes.
The great part of these two opinions are we have them both recorded, and can monitor their results. We look forward to updating you on these forecasts as time reveals the truth.
Our opinion is that John is slightly too pessimistic and Michael too optimistic. (Again, this is only our opinion.)
Have a good day!
JK