Broad Oak: your emotional support animal

Sunday, February 01, 2009

Michael Panzner interview

Some salient points in Michael's answers:

  • The crisis could continue for another decade;
  • investors will have to tread carefully and consider the risk of dealing with others;
  • dividend yields could increase 2 - 4 times (suggesting that current stock prices could halve or quarter);
  • after some more deleveraging during this year, it may be useful to accumulate precious metals
Read it all here; htp: Abnormal Returns

Also linked on AN is a story about Warren Buffett's firm insuring third parties against a long-term market drop. Berkshire Hathaway has taken $4 billion in bets; are they right? Or are they right only in the sense that nominal prices will hold, while inflation will mask the real reduction in value?

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