It used to be if the stock market went down, the liquidated capital had to go somewhere, usually into real estate. If housing and commercial property values started softening, investors sought bonds to even out the trough. And, if corporate bonds or munis took a turn south, there was always foreign exchange, or another sector in the stock market to re-evaluate and hedge. But, today, I wonder "Where's the safe quarter"?
A functional central bank, something which the US didn't have in 1929, and the global nature of capital markets should prevent the US economy from taking a nose dive into the abyss. But the question remains as to where the safe play for investments remains....is it simply under the mattress for a while?
I'd be interested in your thoughts. Longitude generally isn't engaged on investment topics but the swirl of the markets has us talking, and thinking. Clearly, there will be shake out in the payments landscape from this realignment of organizations...I mean, can Lehman really continue to 'prefer American Express' if they're owned by Bank of America? But, there are more profound fundamentals I think we'll see changing over the next several months. What's your view?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment