Nov 29 2008

All’s Well That Ends Well

Published by at 8:39 pm under Global Economy,Investing,US Economy

“There is no royal road to anything.  One thing at a time, all things in succession.  That which grows fast withers as rapidly; that which grows slowly endures.”  – J.G. Holland

 

A friend and fellow CeFiMS alum recently made me aware of a Viewpoint published on BBC News by Sir Evelyn de Rothchild.  The perspective of Sir Evelyn is one that has formed from living an amazing life in a world that only the most accomplished and privileged ever experience first hand.  He has also been in the game long enough to qualify his observations and recommendations at this critical juncture.  I strongly suggest you read his Calls for Action and make special note of what he says about oversight, modern executives and the reality of our predicament.

 

It’s amazing to consider that thanks to the Internet we have easy and rapid access to information on just about everything – but so much of it is exaggerated or filtered rubbish.   In fact, it is nearly impossible to know what to believe much of the time.  I suspect that beginning with the earliest European corporations of the 17th Century, exagerations and inaccuracies have been used to raise capital and keep investors in the dark.  There have been countless laws enacted over the decades in every country to thwart the unscrupulous.  Recently, after the MCI-WorldCom and Enron scandals, the U.S. enacted the Sarbanes-Oxley Act of 2002 to address accounting accuracy and transparency among other things.  Unfortunately it apparently didn’t adequately address valuations, leverage, credit derivatives, and age-old greed at any cost.  So needless to say, we still have a great deal of work to do.  If you are not a Wall Street insider and would like a flavor of what was actually going on before the crash, read The Autumn of the I-Banker from New York Magazine.  You will be shocked and stupefied!

 

Finally, I received a letter from Charles Widger, Chairman & CEO of Brinker Capital.  I don’t know if Mr. Widger knows what he is talking about (I hope he does because his firm has some of my hard-earned money), but he believes now is a good time to consider your options.  According to Mr. Widger, “Historically, the stock market bottoms about one year into a recession caused by financial panics and well ahead of economic recovery.  Assuming recessionary slow growth began in the fourth quarter of 2007, the U.S. stock market should begin recovering in the first half of 2009.”  Let us all hope and pray that past observations are relevant in this case.  Happy Thanksgiving!    

2 responses so far

2 Responses to “All’s Well That Ends Well”

  1. Stacey Derbinshireon 07 Dec 2008 at 3:00 pm

    Great Blog post. I am going to bookmark and read more often. I love the Blog template ? if you need any assistance customizing it let me know!

  2. Cypetrenceron 24 Feb 2009 at 1:09 am

    Thank you!

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