Barry Ritholtz, writer of The Big Picture blog and author of Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy, last week addresseddelegates at a CityWire event in Berlin.
According to CityWire, he argued that we were in a secular bear market that began in 2000 and has some years to run. “In secular bear markets, the buy-and-hold approach to investing is a ‘disaster’, he says, citing the experience of 1966-82 in which the Dow Jones Industrial Average went through five strong rallies and ended up back where it started. It’s not all bad news – the current cyclical rally has a few months yet to go with up to 20% upside, based on historical patterns – but will be tough going, Ritholtz warns,” reported the website.
In part two of the interview Ritholtz discusses the state of the US economy, why the US government should have let the banks collapse, and why inflationary fears are misplaced.
Source: Richard Lander, CityWire, November 24, 2009.
