Komal Sri-Kumar, chief global strategist at TCW Group Inc., talks about the European sovereign debt crisis, the outlook for Federal Reserve policy and investment strategy. I agree with his general outlook in this clip. An important caveat I would add is that when he mentions that dividend paying stocks can offer some protection in this environment, realize that ‘some protection’ in bear markets typically amounts to dividend paying stocks losing heavily but on average some 10% less than the overall market. Here is a direct link.
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The much anticipated market crash is simply not going to happen…this year. Fear of such is built in….the bears have the floor and as long as they do there will be no collapse. Any air pocket, even a small one will be countered by Fed intervention through jawboning or direct action. The wall of worry is being scaled…slowly, deliberately. A new all time high for the S&P is possible before the eventual reboot.
Got oil??
Mr. Kumar still (wrongfully) seems to be in the “Soft Deflation” camp.
I think Sy explains the current market action the best:
Markets’ and Central Banks’ Catch 22 Continues.
http://www.streetsmartpost.com/2012/08/07/markets-and-central-banks-catch-22-continues/