Interesting Times

If I were running a company today, the company would be doing great and expanding like crazy.  In the interest rate environment we find ourselves in, it’s almost impossible to do poorly.  I would be borrowing as much as I could from any bank, that would lend it to the business, and expanding as fast as we could go.

I always pushed hard for growth, when the economy was at its worst.  Most people stopped growing and sat on the sidelines, but I felt the time to expand was when others backed off.  It was easier.  It takes cajones to do this, particularly because banks hate it.  But, if the organization is good enough, the style really works. 

Banks, which are run by people who can’t make it in real business, always believe in going with the trend, while I believe in going counter-trend.  Running counter-cycle is the best way to make money that I know, but it’s hard to swim upstream, when everyone thinks you’re crazy.

As the economy gets better and companies make more and more money, the Stock Market is going to go up.  My fearless prediction for this year is somewhere in the 10-15% range.  I also believe that Congress will begin to act more responsibly and start to limit spending.

I’m an eternal optimist, so don’t base any investment strategies on anything I say, but if you do and you make any money, I would love a piece of the action.  If you lose money, call Newt Gingrich.  He told you the world was coming to an end.