Topic: How To Invest

What is Pat’s commentary for the week of November 28, 2017

Article Excerpt

Dear Inner Circle member, Here’s the text of the most-recent letter I sent to our Portfolio Management clients in late October: “Emergency government measures can have unpleasant, unforeseeable side effects for the economy and investors. But you need a long-term perspective to see the link between cause and effect. The 2008/2009 financial crisis was the world’s worst financial upset since the 1930s. So, governments and central banks around the world took extraordinary measures to halt the damage and spur a rebound in the economy and stock market. In the U.S., the outgoing Bush and incoming Obama administrations turned on the deficit-spending tap. They began a series of yearly federal budget deficits that were unprecedented in peacetime. Other countries followed. Meanwhile, the U.S. Federal Reserve and other central banks began a program of monetary economic stimulus that has come to be called “quantitative easing.” That is, they began buying financial assets—mainly government bonds, but also mortgage debt and corporate securities—every year for each of the past…