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Voices in the Wilderness

04/21/2013

Being a voice in the wilderness can be a lonely experience.  So, it can be nice to hear another voice and even nicer if that voice agrees with you.

I have been worried for some time that we will experience a “Jim Fixx” moment, remembering the highly trained, low-body fat runner who suddenly dropped dead from a heart attack.

According to Investment News, “Jeffrey Gundlach is known as one of the best bond fund managers on the planet, but he also has a remarkable knack for predicting where markets are headed.”  He just predicted we will have a “ka-boom” moment.

I think we are saying the same thing, i.e., that the market will continue upwards, after our Spring swoon, until it has a sudden extreme fall.

He believes it will happen when debt, mostly government debt, reaches an undetermined point, at which time the market collapses under the weight of so much debt.  I expect it will happen due to a derivative blow-up that could easily predict an immediate debt collapse.  It could also result from a technology collapse or inside a “dark pool” with the same result.

In other words, everything will be fine . . . until it isn’t!

It sure is nice to have a little company . . .

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