U.S. Treasuries

Whitney Tilson: Buy Stocks, Sell Bonds

Whitney Tilson of T2 Partners is another respected investor who has hopped on the large-cap equities theme. While Tilson is bearish on the economy, he believes large companies with pricing power and compressed P/E ratios will do well.  One of Tilson’s examples is Microsoft, which is trading at less than 10 times earnings net of cash. Tilson also expresses his skepticism that bonds are a good bet at current yields. I agree…

Misconceptions, Misrepresentations, and Illusions About Our Economy

I know I am in the minority in my opinion that big economic shockwaves are coming, which is fine by me, since there is some serious lack of understanding out there of how the economy and markets work. Need proof? How many people saw the “Great Recession” (read: Depression) coming, even though it was preceded by the most obvious bubble in history? Exactly, not many.  In time like these, you need to think…

China Buying U.S. Treasuries Over Gold?

This is one of the more amusing articles I’ve read in some time. From the headline of the Reuters article, China says committed to U.S. debt, wary on gold, I was sure China announced some kind of monumental shift in policy. But alas, upon reading the article, I realized China was playing the same game Soros did when he called gold “the ultimate bubble”- before, of course, doubling his holdings…

The Coming Debt Default in America

For years, Cassandras have been warning of an economic collapse in America driven by a default on our national debt. Yet amazingly, in the face of accruing liabilities, foreigners have continued to fund the lavish lifestyles of Americans. The specter of a wave of sovereign debt defaults is becoming more of a possibility daily. Historically, waves of sovereign debt defaults follow periods of relative calm in credit markets. Sovereign defaults…

A Year-End Look at Gold, Stocks, and Bonds

With 2010 just around the corner, it’s a good time to take a step back and analyze the major asset classes while attempting to divine where we are headed in the future. Stocks I am starting to get the sense that the rise in stocks is more than just a classic bear market rally and is now starting to instead signal potential inflation. I wouldn’t be surprised by new nominal…