February 1, 2011 - Vol 5 Issue 5
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Can Economics Save the Economy?
By Robert Huebscher
Christina Romer, Greg Mankiw and Paul Krugman were among a group of thought leaders who spoke at a conference in Cambridge last week. They cited a lack of sufficiently powerful and politically feasible policy options, calling into question whether economists will be able to produce the clear path to the stronger recovery that the Obama administration seeks.
The Inflation the Fed Fears Most
By Robert Huebscher
The term inflation is widely used but generally misunderstood. Economists, politicians and the general public understand it to mean one thing. Inflation, however, has a very different meaning to our central bank, as I will explain.
Four Ways to Get Prospects Off the Fence in 2011
By Dan Richards
Dithering prospects - we've all been frustrated when someone who would be a really great client takes forever to make a decision. That's why getting prospects to make faster decisions should be your first resolution for 2011.
Stop Using Outlook for Email Marketing
By Kristen Luke
Unfortunately, many advisors confuse the ability to send hundreds of emails through Outlook with conventional email marketing. Advisors who do this don't know that they are putting themselves at risk of violating the federal CAN SPAM laws.
Rubbing One's Smell on the Project
By Justin Locke
When you give clients advice, sometimes they ignore it. Though vexing, it is an important reminder that you are their financial advisor and not their financial commander.
Why Public Funding of Venture Capital Has Failed
By Dan Richards
Josh Lerner is a professor at the Harvard Business School, with a joint appointment in finance and entrepreneurial management. In this interview, he discusses his research on why public-funded venture capital sometimes succeeds but other times fails. Both a video and a transcript are available.
Letter to the Editor
A reader disagrees with John Hussman's recent commentary, Sixteen Cents: Pushing the Unstable Limits of Monetary Policy, which appeared on January 24.
Advisor Perspectives Announces First Venerated Voices™ Awards
Last week we announced our first Venerated Voices™ awards, recognizing the market commentators who were most frequently read by advisors during 2010. Awards were issued in three categories: The Top 25 Venerated Voices™ by Firm, The Top 25 Venerated Voices by Author and The Top 10 Venerated Voices™ by Commentary.
Highlights from Market Commentaries
Below are the three most widely read commentaries during the last week:
About 100 years ago, the Russian physiologist Ivan Pavlov noticed that when the feeding bell was rung, his dogs would salivate before they saw the actual food. They had been "conditioned." And so it was with "The Great Stimulus" of 2008-09.
Pavlov's Bulls by Jeremy Grantham of GMO
The unfunded liability that has to be closed at the lower levels of government is estimated to be $1 trillion and the combined deficit that has to be closed for this year is far higher than we initially thought at $135 billion. Second, there is reportedly talk in Congress of a broader bankruptcy bill that would give the states the power to adjust their pension obligations and rework union contracts. However, no bailouts are coming and the GOP is adamant about that. Staff cuts, service reductions, and tax hikes are coming in this critical 12% of the economy. Count on it.
Muni Update by David Rosenberg of Gluskin Sheff
Nice Speech, But Now Obama Must Act
The president left no doubt that tackling unemployment was a priority. Success on this would also facilitate the medium-term budget reform that he is targeting. Mr. Obama must make clear jobs creation can no longer depend simply on stimulus, federal government hiring, and the hope that previous drivers (such as construction) will return.
Nice Speech, But Now Obama Must Act by Mohamed A. El-Erian of PIMCO