Glad You Agree

excerpts from this week's report:

"It is with some satisfaction to note that an increasing number of my investment strategist brethren have been coming around to the views expressed in this report and my blog for the better part of the past two years. Specifically, the credit derivatives problem has spawned such phrases as “black holes” and “we don’t know what we don’t know” (heard here first, I might add) that are now showing up with regularity elsewhere.


And, although too much of the talk centers on a subset (sub prime mortgages) of the infinitely larger ($400 trillion plus) credit derivatives’ universe, at least many are now getting what readers of this report and blog have heard for quite some time.

Better late than never? Perhaps, but so what? Being right is yesterday’s news. And that’s not what any good investment strategist is paid for.

The real value in being right in this area is (hopefully) clear-headed thinking re what to take from yesterday’s credit derivatives’ news and what is the next area of consensus thinking that may be off the mark? In this regard, I think it is the debate re cutting the Fed Funds rate.

Here are a few reasons to consider:..."

"Blasting the US economy with a broad based liquidity approach (which is what a Fed Funds rate cut amounts to) is ill advised, untimely, and sends a very bad moral hazard-drenched message..."

"To support my views, please read the following 8 factors and see if you can identify any reason why a Fed Funds rate cut at this time makes sense:..."

also in this week's report

• Valuation Model
• 2Q07 Earnings Update
• ETF Model Growth Portfolio
• Key Economic Indicators

Note: To gain access to this week's report (and all previous reports), please click on the Blue Marble Research Services link to your left for info.