Warren Buffett’s greatest secret – to be fearful when others are greedy and to be greedy when others are fearful – is largely ignored because, first of all, a frothy market that’s going higher virtually every day looks like the best time to make a lot of money in stocks.
Since the early 1970s, three major bull markets have ended in “fire” – an overheating economy. And three were caused by “ice” – a sudden deflationary collapse. Porter ponders what will happen with the current bull market.
About 15 years ago, Porter wrote The End of America
– a 77-minute documentary that explained how America, the world’s most successful and prosperous country, was destroying itself. The final trigger, he says, will be the collapse of Social Security in 2029.
While most of the financial world was still talking about “peak oil,” the Gods of Gas knew about massive technological improvements to drilling and fracking and figured, correctly, these innovations would once again make natural gas the world’s most important sources of energy.
Today, Distressed Investing editor Marty Fridson writes that when a sell-off in distressed debt begins, and sellers vastly outnumber buyers, outstanding opportunities will exist even in bonds that face no serious risk of failing. It can be a ripe time for juicy returns.
An urgent warning about the ongoing consumer credit implosion, and Porter announces our new “short” portfolio.