He discussed his investments ideas and broader economics themes for 2011, including:
- Municipal and state defaults/bankruptcy
- The Irish "bailout"
- Italy being a bigger problem than Spain, and is currently off the radar
- Real Estate: bursting in Australia, and about to burst in Canada, but doesn't comment about the UK because he doesn't know enough about it. "Australia is in a particularly nasty spot", says Mish
- China overheats, has an unemployment problem bigger than the US
- Continuous strengthening of the dollar
- Market sentiment and the extreme bullishness it has reached, both in equities and commodities
- He also discusses Japan, which he likes here, even though the Japanese currency can blow up at any point! So you need to hedge your currency exposure.
I would agree on everything, but Japan. The Yen being at a historical high, and equities markets having rebounded, I'm not sure it's going to be a good investment in USD terms. But I might be wrong.
You can either listen on the embedded player below, or download the MP3 file.
4 comments:
if Mish is hot on Japan why did he post on his blog that it was ready to fall off a cliff: http://globaleconomicanalysis.blogspot.com/2011/01/japans-finances-approach-edge-of-cliff.html
I don't know, but you have a point. Maybe he's bullish very short term only about the equities.
Another interesting post, by Tiho this time, on Japanese equities
http://theshortsideoflong.blogspot.com/2011/01/contrarian-take-on-japanese-equities.html
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