terenceleechan

Wonderful interview by Consuelo Mack with James Grant, the publisher of The Interest Rate Observer and forever the contrarian. People have always talked about how the economy is going into a "new normal" phase... with growth characterized by a sluggish rate of no more than 2%-3%, due to the collapse in the housing market, employment, consumer spending, etc. James Grant argues that everything is still normal and the market is just as cyclical as ever, and we are just going through the regular cycle of one extreme to another right now. When everybody is bearish and touting this "new normal", the market will have ways to go. On the other hand, when everybody is complacent and feels positive about the economy, that's when you sell. He talks about this very important point towards the end of the 25 minute video, but its worth while to watch the whole thing as he also talks about Gold and US government debt.