October 26, 2008
prescience: When this man predicted a global financial crisis more than a year ago, people laughed. Not any more...
-- by Ron Sheridan
prescience (prĕsh'əns, -ē-əns, prē'shəns, -shē-əns)
Knowledge of actions or events before they occur; foresight.
Nouriel Roubini: I fear the worst is yet to come
When this man predicted a global financial crisis more than a year ago, people laughed. Not any more...
As stock markets headed off a cliff again last week, closely followed by currencies, and as meltdown threatened entire countries such as Hungary and Iceland, one voice was in demand above all others to steer us through the gloom: that of Dr Doom.
For years Dr Doom toiled in relative obscurity as a New York University economics professor under his alias, Nouriel Roubini. But after making a series of uncannily accurate predictions about the global meltdown, Roubini has become the prophet of his age, jetting around the world dispensing his advice and latest prognostications to politicians and businessmen desperate to know what happens next – and for any answer to the crisis.
My investment advisor at a major national bank wants me to invest my savings in stocks and bonds (50% - 50%). He thinks we have maybe a 2,000 downside, before we see a 10,000 point upside. The bank requires a 1.5% fee based on the value of the portfolio.
I started my introductory face to face conversation with my advisor by letting him know that when it comes to what comes next in the economy, that was more nervous than a long tailed cat in a room full of rocking chairs.
I still am. In fact I'm beginning to experience a palpable sense of panic.
God help us all.
Posted by Ron Sheridan at October 26, 2008 11:03 PM
Dave, I'm having trouble understanding this post. Are you writing about yourself beginning at "My investment advisor..."?
If so, you are too old for a 50/50 split, even in calm times. Dump your adviser now.
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