Posted on 10/14/2010 7:47:24 AM PDT by george76
Most investors would be happy if they knew what was going to happen in the next 10 days. Nick Colas, chief market strategist at BNY ConvergEx, thinks he’s got it licked for the next 10 years.
In a note released Wednesday, he calls it the “New Abnormal.”
So give the man credit for a nice play on words that stands Pimco’s “New Normal” forecast, and much of its underlying principles, on its head.
Colas draws some common-sense conclusions based on all the inflation likely to be pumped into the system and the higher tax rates that will be needed to pay for the trillions in sovereign debt floating out there and coming to maturity in the next decade.
“I don’t think you can crush the US housing market and global banking sector, replace it with central bank liquidity on an unprecedented scale, see historically high and sticky unemployment, and witness rolling mini-crises of sovereign debt concerns without thinking that the landscape is going to be very different for a long time,”
(Excerpt) Read more at cnbc.com ...
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