I respect people who have the confidence of their convictions. In life, medicine, politics, and especially finance, certain things are correct and certain things are incorrect. A particular opinion will be borne out eventually, and in money management a bad decision can be ruinous.
Brian Wesbury, a financial planner writing in the WSJ, has just wandered out onto a limb. He says, “Now that the Fed has cut interest rates by 175 basis points, the odds of a huge surge in growth later in 2008 have grown… Keep the faith and stay invested. It's a wonderful buying opportunity.”
On the other hand, George Soros, the noted investor, currency speculator, philanthropist and billionaire says, “The current crisis is not only the bust that follows the housing boom. It’s basically the end of a 60-year period of continuing credit expansion… the end of an era.”
Let’s keep a watch …. One of these gents will be correct, and the other will be wrong. We’ll check back in 4, 6 and 12 months to keep tabs. It’s February 2nd, do you know where your 401 (k) is?
Dow Jones Industrial Average 12,743
Nasdaq 2413
S&P 500 1395
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