Quote Originally Posted by Pascal View Post
I never fail to read Hussman's weekly analysis, because like most fund managers, he is well educated, intelligent and rational. Hussman is therefore a very good representative of the funds' way of thinking.

http://hussmanfunds.com/wmc/wmc121217.htm

Because of his education and long experience of "good common sense" investing, he is fully hedged, most probably like most fund managers. This means that funds are not expected to loose much money this year, but will not gain any either.

However, they will continue charging "1% - 20%" and hence will slowly force their customers to pull out their funds, because with low level of interest rates and the perception of high risk levels, it is almost mathematically impossible for traditional funds to justify their management fees.

To earn good revenue in the present market-repression-conditions, you'd need to be an "out of the box" thinker like Hugh Hendry.

I'd be happy to hear any "out of the box" investment suggestions for 2013.


Pascal
Don't know if you regard this as out of the box but interesting nevertheless :-

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The Big Picture

Last Update: 17-Dec-12 09:10 ET

2013 Outlook


Entering 2012 we thought there was a reasonably high probability that the stock market would post a strong gain this year. There are still a few weeks to go and an all-important fiscal plan hangs in the balance, but so far the S&P 500 is up 12.7% year-to-date, excluding dividends.

Our view then was predicated on three factors:
1.Stock prices were flat in 2011 despite earnings increasing 14%, suggesting there was ample room to play catch up if the market could temper its fears of worst-case scenarios unfolding
2.The risk of a credit implosion in Europe and the residual impact on the global economy was overblown and
3.US economic growth was building a stronger base and was accelerating

A year has made a lot of difference for equity investors in a good way. Unfortunately, we are not as hopeful about the market outlook entering 2013. Once again, we can point to three factors in particular driving our perspective:
1.Economic growth is decelerating
2.Fiscal austerity is just beginning in the US and there is too much complacency about its outcome and
3.Earnings growth estimates are too high

Those factors may not conspire to produce a negative return for the stock market in 2013, yet they present real obstacles for achieving another strong gain and raise the importance of managing against downside risk..............................

http://www.briefing.com/Investor/Pop...1TheBigPicture