Thursday, February 4, 2010

The Market, the Portfolio and the Budget

The market is on a downturn and we believe it is due primarily to the Budget proposed by the current Administration. The above is our baseline portfolio which as we have recounted had been started in December of 2008. That was near the nadir of the market and we have seen the performance as we have progressed through the current Administrations economic plan.

As we have been showing the proposed Budget is fiscally unacceptable. Now all outsiders see that to be the case. The economic "team" inside the current Administration appear to have no understanding of the implications of their actions.

Sovereign Wealth Funds and others comparable, including China in toto, and even most likely Russia in a strange way, may force the current Administration back to a responsible path.

If I remember correctly Orszag was a classmate of my daughter in the MIT pre-school "graduating" the same year. Thus my image of him is frozen in time as a three year old. I wonder if anything has been learned since then?