Tuesday, September 09, 2008

Donald Coxe: Cautious About Equities, Believes Interventions are Inflationary

Legendary investor Donald Coxe is one I follow closely. I would highly recommend his latest conference call where he discusses the global economic environment, and comments on potential ramifications of the government's Freddie/Fannie interventions.

He also has a fantastic Canadian accent that really adds to the fun.

My notes from the call:
  • Financial system is still under stress and undercapitalized
  • Remains cautious about overall equity exposure
  • Believes the gov't interventions are highly inflationary
  • Cautions against confusing deflation with falling asset prices (believes Japan's deflationary recession was an exception to the norm)
  • Bullish on commodities...provided we do not have a deep global recession
Also check out this summary of Donald Coxe's thoughts.

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