Weighing The Week Ahead: Fireworks In The Forecast

 | Jul 01, 2012 11:39PM ET

Forecasting fireworks this week should be pretty safe!

 
I will have trouble outdoing last week's WTWA theme:  The REAL Cult Of Equity.
 
This is the single best piece I saw last week, and I read hundreds of articles. Take a few minutes. No, take more than a few minutes and read it twice.

\Matt covers the key quesitons about whether we are in a recession,  why stocks are cheap, the risk/reward for stocks, and some refutation about those "bad times to invest" guys -- although he is too polite to name them.
 
He is especially powerful in explaining marginal forces on asset allocation -- something totally ignored by most pundits. Here is one example:

Chart 6

If the chart seems a little wonky and does not make immediate sense to you, all the more reason to read the article. You will see why!  (It shows the powerful mean reversion of stocks and bonds -- a key concept).

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Jeff Miller

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