RHYTHM IN HISTORY

As we have said many times lately, history rimes… Today´s world looks very much alike the 30s… See what David Rosenberg has to say about it:

“DARING TO COMPARE TODAY TO THE 30’S
Coming off a crash (‘29) and rebound (‘30); aftermath of an asset deflation and credit collapse banks fail (Bank of New York back then, Lehman this time around); natural disaster (dust bowl then, oil spill now); global policy discord (with the U.K. then, with Germany now); geopolitical threats; interventionist governments; ultra low interest rates (long bond yield finished the 1930s below 2%); chronic unemployment (25% then, 17% now); deflation pressures; competitive devaluations; gold bull market (doubled in Sterling terms in the 30s); debt defaults; sputtering recoveries and rallies; onset of consumer frugality.”

As we recommended at the end of 2009 : “We believe that the dominant focus should be on Capital preservation and Income orientation in any form of investment ( bonds, hybrids,Hedges,etc…) and consistent focus on reliable dividend growth and dividend yield.” (http://www.lateralthinking.biz/2010-forecast-new-normal-new-frugal.html)

Be careful out there !!!