The Rise of A New Asset Class - 08/01/2008 - Audio Version

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posted by John Mauldin
09-09-2008

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The Rise of A New Asset Class - 08/01/2008 - Audio Version

This week I am in Maine on vacation with my son, and next week is my daughter Tiffani's wedding, so for the next two weeks I am going to send an updated version of a speech I have been giving the past few months on what I think is the likely potential for the rise of a brand new asset class. It is too long to be sent as one letter, so we will start with the first part today and finish with the second part next week. This first part can be read as a standalone letter. I think we're at a watershed moment, what Peter Bernstein defines as an "epochal event," with the very order of the investment world changing as it did in 1929, in '50, in 1981, where a number of things came together - it wasn't just one thing but a number of events happening that conspired to change the nature of what worked in the investment world for the next period of time. It took most people a decade after 1981-2 to recognize that we were in a different period, because we make our future expectations out of past experience. It's very hard for us to recognize a watershed moment in the process. We're going to look back in five or ten years and go, "Wow, things changed." As we will see, it's going to be a change that's going to cost people in their portfolios and in their retirement habits....

Comments

oscalsis wrote re: The Rise of A New Asset Class - 08/01/2008 - Audio Version
on 10-10-2008 5:09 PM
As an 84 year old who as a child personally experienced the first great depression. Then went Through WW2. And under the GI BILL due to my time in sevice in the E.T.O. Became a Doctor of Podiatry. I was in private practice from 1951 to1981. Treating thousands of patiants . Think of the stories I have heard on a one an one Doctor-Patiant relationship about their lives and life experiences. Podiatrists treat chronic conditions and before I sold my two offices one on the North shore of L.I. and one on the South shore both, in middle to upper class locales. I was treating the children of my children. I also volunteered my time to city Hospital Clinics gratis and having the same relationship with the other end of the economic scale..I also accepted Medicaid patiants and I'm proud of the fact that they recieved the same care as my private patiants. They were from all walks of life and as diverse as CEO's of Fortune 500 Companies and the people who worked for them.To me they had one thing in common a pair of feet (usually). They all could only sleep in one bed at a time, wear one pair of shoes or drive more than one automobile.etc...The difference is a matter of pure chance. What era of time you were born? What was the economic status of your family?How much and type of Education and Heath Care did you recieve? What political learning did you recieve from your Family? My livelehood is from my Social Securiy, V. A. Disability Pension and my Interes t, Dividends and Capital Gains. My salvation, due to my up bringing by my Motheris is that my debt is zero. Just heard on CNBC that this week was the greatest ONE WEEK LOSS SINCE 1933. This is when we had to move from Boston where I was born to The Bronx, N.Y. to a third floor walkup. My father who was in Business and lost all in 1930. This was The great Herbert Hoover Depression.Thank G-D for F.D.R. and the Democratic Party although it took time but our great country came back. When you go in to that voting booth please think about this ,when you pull the lever. You will never hear me say that ANY POLITICIAN is holier than thou but one must consider the odds. They are all in business for themslves and the people are meaningless to them. Then think of the CEO's and board members Do they act in we shareholders interest or of themselves Think of AIG and the MONEY our country gave them and the Bigshots who go on weekly 5 star Hotels and Spa Junkets Think of Cheney everytime you gas up your car and the no bid contract he gave to Halliburten for The IRAQ fiasco and the fact that our so called heads of state never spent a day in any of our armed forces except for the President who was in the Texas National guard Air Force and it cost us Thousands to teach him how to become a pilot and then goes AWOL and Refuses A DIRECT ORDER. Any veteran that did either action deserves a COURT MARTIAL. I congratulate The Republican Nominee and his sacrifice and courage during the Vietnaam War but think of the possibility of Sarah Palin being one heart beat from being our President.. I hope I havn't been to verbose but I'm wriiting this from the bottom of my heart. G-d bless you and G-D bless America. Sincerely, Dr. Mel
oscalsis wrote re: The Rise of A New Asset Class - 08/01/2008 - Audio Version
on 10-11-2008 12:57 PM
There must be someone out there that has some response. PRO OR CON. Dr.Mel