Wednesday, January 16, 2008
Yep 2008: back to the 1970's
Well that’s it its official the thing I have feared the most has come apoun us ,we are heading back to the 1970’s ,a period noted for bad hair,bad taste,bad music ,divorce,cheesy clothes ,a lousy economy ,an abrigation of personal resonsibility ,rabid statism ,sticking up for failed policies and a blind adherence to abject stupidy(one dumb thing after the next) .Don’t dispair at lest football was good and I can show you how to make money off all this and have a great laugh at the same time.
So why is this happening ,well the generation that came of age in the 1970’s that brought you DISCO,hair helmuts ,global terrroism and so on is like all generations looking to make its mark. Since the 1970’s were such an abject disaster ,this generation now of an age to effect change is once again asserting its self in an attemp to prove they really were right the first time. It is a demographic shift as baby boomers retire and now the 1970’s (bad taste) generation wrestels for control over the decision making process of the economy .
Dought me look at the data ,inflation is faning the fires,productivity slowing ,regulation and taxes are creeping ever upward . Now I am not saying that the hyper inflation and maylasse of the 1970’s is coming back ,but inflation will be higher ,and growth will be slower than we have been used to . So whats an investor to do? Focus on the sectors that prospered in the 1970’s or go short against the market and make money off the market decline. For the average investor there are now many ETF’s (exchange traded funds) that one can use to bet against the market.Understand that these bets can offer high returns but also entail extensive risk. So dust of your DISCO ball and break out your white pollyester suite ,here we go again…