Questioning the Masses is Good for Your Portfolio
A recent article on the merits of a falling dollar prompted Zero Hedge guest contributor Davos to directly contradict it, “it should scare you.”
The reason is straightforward. The article suggests the lower dollar is good for US exporters and foreign importers and is bad for foreign exporters and US importers. However, it fails to point out certain key details, for example, that “we import 2/3rds of our oil.”
In another flimsy argument, the article cites two recent Federal Reserve papers to support its points. To address the Fed’s credibility Davos embeds the YouTube video below, where the “chairman of the Fed who got it 100% wrong” explains his perspective on a number of issues over the past few years. It’s hard to believe anything from the Fed at this point.
Finally, to explain how this critical thinking is good for your portfolio Zero Hedge quotes HL Mencken, “No one in this world, so far as I know … has ever lost money by underestimating the intelligence of the great masses of the plain people.”
Davos has “deleted every mainstream news source” from his RSS reader and would likely recommend you do the same. See the full analysis from Zero Hedge in its criticism of mainstream news and experts.