NetNet, which is kind of like Matt Taibbi without all the swear words or Michael Lewis without the humor, has an interesting piece on investing in 2020, based on the work of investment strategist Nick Colas:
Colas draws some common-sense conclusions based on all the inflation likely to be pumped into the system and the higher tax rates that will be needed to pay for the trillions in sovereign debt floating out there and coming to maturity in the next decade.
Viewed through that prism, a 10-year forecast doesn’t sound so silly after all.
“I don’t think you can crush the US housing market and global banking sector, replace it with central bank liquidity on an unprecedented scale, see historically high and sticky unemployment, and witness rolling mini-crises of sovereign debt concerns without thinking that the landscape is going to be very different for a long time,” he writes.
Most of what I hear from really thoughtful people makes me very pessimistic about the long-term prospects for investment. My bad habit of not putting as much money in my retirement as I meant to (hey, everyone does it) has started to look shrewd.