You remember the kind, small hard rubber wheels sticking out in the back of your favorite bike for stabilization. Think back to when you had them. Well, Dad has decided the training wheels must be removed, and has enlisted your handy Uncle to make it so. The big event is today and the whole family is watching. You are riding the bicycle and peddling like mad, and good old Uncle Ben, who is running by your side, thinks you’re heading in the proper direction and with enough speed….lets go…. What happens next?
Well most of us know, it can go well, or it’s just another trip to the hospital.
Our economy is on training wheels. Dad is President Obama, and Uncle Ben is Ben Bernake. The training wheels are economic stimulus and Uncle Ben’s controlling hand of safety is monetary policy.
Currently, the training wheels are still affixed and Uncle Ben is still running by our side. The real question, and one that we are dealing with every day, is when will the eventful day occur when private industry must again take the weight of economic responsibility.
When the change occurs, when the training wheels come off, is also the time of greatest risk. We know that interest rates cannot be this low forever, and we know that the Government cannot continue to print money. The ONLY question is when.
This brings us to management of your assets. We are properly positioned for the current state of affairs, but we stand ready to remove risk, or change the allocation of your assets given the above scenario is accelerated or delayed. What do we want to see? Slow and steady real improvement in the economy, with small adjustments to interest rates and the reduction of spending (not just increased tax revenues). We feel we can make money in the US market currently, and may need to be in markets outside the US in the future. The biggest issue continues to be keeping the money you’ve already amassed, and sticking your neck out only far enough to make progress.
To finish the analogy, we have added a proper fitting helmet, knee and elbow pads. But in the end, it may not be a time to ride at all, but wait on the sidelines while your first cousin takes the ride! We stand ready to do all of the above.
We greatly appreciate your business.
Scott Airey
Training Wheels – 04/08/2010
You remember the kind, small hard rubber wheels sticking out in the back of your favorite bike for stabilization. Think back to when you had them. Well, Dad has decided the training wheels must be removed, and has enlisted your handy Uncle to make it so. The big event is today and the whole family is watching. You are riding the bicycle and peddling like mad, and good old Uncle Ben, who is running by your side, thinks you’re heading in the proper direction and with enough speed….lets go…. What happens next?
Well most of us know, it can go well, or it’s just another trip to the hospital.
Our economy is on training wheels. Dad is President Obama, and Uncle Ben is Ben Bernake. The training wheels are economic stimulus and Uncle Ben’s controlling hand of safety is monetary policy.
Currently, the training wheels are still affixed and Uncle Ben is still running by our side. The real question, and one that we are dealing with every day, is when will the eventful day occur when private industry must again take the weight of economic responsibility.
When the change occurs, when the training wheels come off, is also the time of greatest risk. We know that interest rates cannot be this low forever, and we know that the Government cannot continue to print money. The ONLY question is when.
This brings us to management of your assets. We are properly positioned for the current state of affairs, but we stand ready to remove risk, or change the allocation of your assets given the above scenario is accelerated or delayed. What do we want to see? Slow and steady real improvement in the economy, with small adjustments to interest rates and the reduction of spending (not just increased tax revenues). We feel we can make money in the US market currently, and may need to be in markets outside the US in the future. The biggest issue continues to be keeping the money you’ve already amassed, and sticking your neck out only far enough to make progress.
To finish the analogy, we have added a proper fitting helmet, knee and elbow pads. But in the end, it may not be a time to ride at all, but wait on the sidelines while your first cousin takes the ride! We stand ready to do all of the above.
We greatly appreciate your business.
Scott Airey