This post is a guest contribution by Bennet Sedacca*, President of Atlantic Advisors Asset Management.
As unpopular as it may have been over the past several years, I have been writing about the impending Recession in the United States and in other nations. I am rather used to criticism as a “perma-bear”, as it relates to our asset-based, over-leveraged mess that we call our economy. It has been no fun whatsoever to be the one to “call ‘em as you see ‘em”, but to be perfectly frank, an outlier view has been a necessary evil, and one that I have been proud to have had the guts to provide.
And so now I will say what the biggest risk of all is in my view. There is no doubt, whether it is in retrospect as most economists suggest or not, that (shhhhhhh …) we are in a Recession … Oh my Goodness, what an unpopular view – that the economy can actually shrink. And shrink it has, it is, and likely will continue to do. The question on my mind, as it has been over the past several months, is if we are going through a traditional Recession or a once-in-a -lifetime Depression? I have actually HOPED that Recession as the result of the unprecedented credit unwind would end up as just a nasty Recession at best. Sadly however, I feel that a Depression is either upon us, or soon will be upon us.
To be truthful or daring is important in markets and other parts of life. To be truthful, you must suck it up. To be daring is to avoid the bad news that is so obvious, but not at all too fun or exciting to focus on. There is no thought clearer in my mind, as I have stated many times over the past year, that we are in a Recession, or quite likely much worse. I hate to say this, as unpopular as it may seem (so what’s new with what I write?), WELCOME TO THE DEPRESSION. For my reasoning, please read on.
Click here for Bennet’s full report.
* President of Atlantic Advisors Asset Management, Bennet Sedacca brings with him more than 26 years of securities industry experience. From 1981 to 1997 he worked for several major investment banks, specializing in high-grade fixed-income securities marketing, trading and portfolio management. In 1997 he formed Sedacca Capital Management focusing on portfolio management for high-net worth individuals and small to mid-sized institutions.
