- Do we have inflation? Yes, the government measure does not tell the whole story.
- Are interest rates going higher? Yes, but too much emphasis on this.
- Is the Nation going broke? No, household net-worth is up and the government balance sheet is very strong.
- Should we worry about economic reports? No, stop looking at them, most (80%) are wrong anyway and revised later.
- Is it too late for emerging markets? No, in 1953 there was 1 mega city in the US, now there are 25. Look at land, labor and education.
- Is the housing crisis over? Yes, but we do have a demographic crisis.
- Can the productivity miracle continue? Yes, because technology is the 3rd input to measure productivity.
- What should I focus on? Demographics, the boomers will change everything, travel, entertainment, health care…they have the money!
- What is the next big thing? Robotics, capabilities are expounding faster than costs.
- What am I missing? Alternative Investments and International exposure, using only 2 of the 5 asset classes is not diversification and look where the land, people and jobs are, over 90% of all three are outside the US.
Taken from a lecture with Dr. Bob Froehlich and Dr. Sameer Jain