15 Minutes

Meredith Whitney and Nouriel Roubini now say the panic is over. Should we care?

These two analysts are now enjoying their 15 minutes of fame as two who correctly foresaw the financial issues surrounding toxic assets, excessive leverage, and unsustainable consumer spending. The Brown University graduate and New York University professor are both admittedly very smart. But do we need to jump at everything they say?

Every market is different. In the late ‘90s Henry Blodgett and Mary Meeker understood how the internet was changing retail and business dynamics. In the late ‘80s it was Abby Joseph Cohen. These people see something different about the current economy and get one big market call right. But it doesn’t really serve investors to name anyone as a market oracle.

These people make a correct short-term prediction and the media showers them with laurels. Nouriel Roubini gets to show off those natty suits. But when the moment passed, did the Abby Cohens and Mary Meekers of the world see it coming? Not really. They kept riding their own personal express until it went off the tracks.

Most traders know that only half of their market calls turn out to be right. They try to set things up so that their good trades pay off more than their bad trades lose. But when the media darlings start to believe their own press clippings, other investors get persuaded that Roubini and Whitney have it all figured out. And no one has it all figured out.

We don’t know what the future holds. The best we can do is keep questioning and maintain our disciplines.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd

direct: 603-252-6509
reception: 603-224-1350

www.chartertrust.com • www.moneybasicsradio.com • www.globalmarketupdate.net
By | 2017-07-17T12:35:22+00:00 September 24th, 2009|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

Leave A Comment