4, 2010 - Vol 4, Issue 18
The Lacy Hunt and George Friedman articles below are from the Strategic
Investment Conference held two weeks ago and sponsored by Altegris
Investments and John Mauldin.
Underpinning the Obama administration's economic
policies is the work of John Maynard Keynes, the legendary British
economist who called for large fiscal and monetary interventions
to counter the Great Depression. On this critical issue, Keynes
was wrong, says Lacy Hunt, the internationally renowned
economist with Texas-based Hoisington Investment.
After a year of intense partisan combat and fiery
debates on Capitol Hill, President Obama signed a massive, nearly
$1 trillion health care bill on March 23 that reshapes an industry
that accounts for one-sixth of the U.S. economy. No one at American
Century Investments® has followed the health care reform bill more
closely than Michael Liss, vice president and portfolio
manager for American Century Value, the company's flagship value
portfolio, and he offers his thoughts on legislation. We thank American
Century Investments for their sponsorship.
provides sector reviews and reports on
quarterly market performance in a new commentary. While
economic recovery is in place, the firm says, its magnitude is
uncertain. Topics covered include winners and losers in the
energy sector, Chinese growth from within, the evolution of
internet-related media and communications, and the financial impact
of health reform. We thank Janus for their sponsorship.
Just as imbalances arise in economics, so they do in
geopolitics. Its power weakened, the US now faces a
difficult choice in the Mideast, where its best option is now to
strike a deal with the regional player it most demonizes, Iran,
according to George Friedman, founder and CEO of the
geopolitical consulting firm STRATFOR.
In his review of the new book, The Quants, Michael Edesess
says its author, Scott Patterson, mistakenly glorifies the
accomplishments of the supposed quantitative "geniuses" on
Wall Street. Those quantitative analysts are not disciplined
for their lack of rigor and, as a result, produce results that are
not justified by the underlying mathematics or by common sense.
Among the items that headline the proposed financial reform
legislation is a new Consumer Financial Protection Agency (CFPA)
that would consolidate regulatory responsibilities for consumer
financial products, currently handled by four separate agencies, in
one central office. Charlie Curnow looks that the goals of
the CFPA and its implications for consumers.
Last summer, Dan Richards talked to a thirty-year veteran of
the business who's consistently ranked as a top advisor. The
week before, he'd talked to a group of rookies just entering the
business. In the question and answer period, he was been asked
about the single most important thing he learned over the course
of his career.
Just because you haven't had much luck generating referrals from
traditional centers of influence (COIs), don't give up your
COI marketing strategy all together. COIs don't have to be CPAs
or attorneys, says Kristen Luke. They can be anyone
who has the ability to influence a potential client to pick up the
phone and call you.
In the latest installment of his series of articles geared to the
educated layman, Adam Apt looks at the topic of the time value
of money, and how discount rates can be used to determine the
value of a security. He shows the practical applications of
present value calculations and its limitations.
Lastly, we highlight submissions to Advisor Market Commentaries.
We welcome guest submissions from our readers. For more
information, here are our guidelines.
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