Thursday, March 8, 2012

The power of Global Macro. Stock picker lesson learned: watch the credit markets

James Kee, president and chief economist at South Texas Money Management Ltd., says investors should avoid short-term forecasts and focus on the longer-term relationships among asset classes. Kee talked with Bloomberg's Pimm Fox and Courtney Donohoe on Bloomberg Radio's "Taking Stock."
Audio Link (Source: Bloomberg, March 7, 2012)

I noticed two things: 
Talking about long term. Larry Summers' joke is that when people start talking about long term, they want to avoid responsibility.
James Kee's lesson learned. In 2007, bond guys warned James about credit crisis, but he had a dogmatic view relying on company data. Healthy balance sheet, P/E at the level of 1998 were important. He disregarded bearish bond guys. Since then, he watches the credit markets.

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