After watching Part I of Bill Moyers interview of Andrew J. Bacevich, I was going to put off this post until the weekend. Then I watched Part II and decided this is too important to put off a few more days. I missed this PBS program on Friday night, but picked it off the Internet this afternoon. It is one of the most important and gripping interviews I’ve seen in a long time. Do not miss it and be sure to pass the URL on to anyone you know on the net.
Mr. Bacevich is the author of “The Limits of Power: The End of American Exceptionalism.”
Lowell
Photograph: Istanbul, Turkey
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Nouriel Roubini forecast the current economic mess, and he is not all that optimistic about the future of America. You can read about it at this URL.
If we knew for sure the next few years of the U.S. market would see a decline in value, we would short the market, put all our holdings into cash, or do a little of both. But we cannot forecast the future with certainty, so what is a plan of action.
- Tilt portfolios toward the value side of the market spectrum so as to focus on undervalue equities.
- Keep 5% to 10% in commodities as hard goods will continue to be in high demand.
- Invest a significant percentage in international and emerging markets. This still may not help as collapse in the large U.S. economy will impact world markets.
- Maintain a level of cash and stable income to survive a crisis.
- Hope for a change in fiscal policies that will bring both national and trade deficits under control.
There are environmental issues that are likely to make our economic problems pale in comparison, but that is for another blog to tackle.
Lowell Herr
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Photograph: Looking from Europe over to Asia across the Sea of Marmara. I was standing in Istanbul when I took this photograph.
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