Monday, January 18, 2016

Strategy Read

Two posts in one day!  Mother of all miracles what is going on?

Well, it's a three day weekend for the financial markets and that provides ample time to share what we are reading.  Not that last week's market crush has anything to do with this - we read all the time.

What you will find below is a link to a big picture, macro strategy tome from one of the largest and most successful investment firms in the world.  Sure, there are millions of these out there but this one caught my eye because it speaks to so many things we have been discussing this year.

Now before you get the idea that I am touting KKR I will tell you that I am not.  I've been around long enough to know that no one is going to be 100 percent right and no one is going to be totally wrong.  I read things like this to help me understand what could happen and how I can profit from it.  This has become very important when assessing the health of the end markets.

KKR's Outlook for 2016 is appropriately titled "Adult Swim." I mentioned this in a Tweet (see the stream to the right of this page) but I think it is worth mentioning once again.

Some of the observations are very much mainstream:  tepid global GDP prospects, trouble in the Emerging Markets, pain with China's transition from a manufacturing/export economy to a consumer driven economy, the continued deflation of high risk assets and more volatility.

I do think the sections on credit, the US consumer and trade are worth reading.  Overall it's a piece I highly recommend.  

You can read the web version or download the complete report from this link:

Call it, $0.02 for the jar.

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