Sound, diversified investments...years of Fin'l Repressionn to come

Discussion in 'Stocks' started by deucy28, Sep 29, 2013.

  1. deucy28

    deucy28

    Sound, diversified investments while faced with continued Financial Repression for some years to come. You could call this, "steady as she goes."

    I would love to hear your comments on the soundness of the PREMISE and of the SELECTIONS the interviewee recommends.


    If you believe in the high probability of continued Financial Repression by the Central Bank keeping bank rates low, there is a diversified, sound way to beat bank interest and CD's.



    The following interview by Bloomberg came through a few days ago of a chief economist and strategist at a major firm. It is milk toast in nature...narrowing sometimes but not specific, and requires you to believe in some inflation and a steepening yield curve.

    It is only 10 minutes, but to cut to the quick, scroll the slide to the 7 minute mark, start listening, and really pay attention at the 8 minute mark. From there it is only a minute or so to listen.


    BASICS

    Diversification
    Spread products
    Corporate Bonds for yields
    Selective groupings of stocks


    Steepening of yield curve suggests the following:

    financials, such as...
    ...bank stocks (Canadian Banks with stable growth, increasing dividends)
    ...insurance companies (rising bond yields and dividend growth)

    Shorting U.S. Treasury Bonds



    Sep 27, 2013

    David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates, says the U.S. economy will "do better in 2014" and inflation will be more of a concern than deflation, making him "bearish on Treasuries." Rosenberg talks with Bloomberg's Tom Keene and Scarlet Fu on Bloomberg Radio's "Bloomberg Surveillance."


    http://media.bloomberg.com/bb/avfile/News/Surveillance/vrFlENPZ_9vw.mp3


    I would love to hear your comments on the soundness of the PREMISE and of the SELECTIONS the interviewee recommends.