We live in a very complex word, and it grows more complex by the day. But let’s set aside all the uncertainties, possibilities, relationships, and exogenous outliers. Let’s strip it away and focus on the basics.
It’s quite evident that being simple-minded in 2009 was the way to go. The President said to go out and buy stocks. The Federal Reserve made it absolutely clear they were going to pour everything they had into “saving” the economy. Any member of John Q. Public who naively took them out their word has made out fabulously well to this day. We sit at lifetime highs in equity markets, in spite of a $23 trillion debt which is going to grow $1 trillion per year (at least) as far as the eye can see.
(more…)