Mauldin: Decreasing Deficit Means U.S. Must Run Trade Surplus

Economist John Mauldin says history shows that if the U.S. wants to reduce private and public sector leverage, it will have to figure out how to run a trade surplus. Mauldin says that a country cannot reduce total leverage while running a trade deficit — the amount of leverage used and the trade balance must balance out to zero. The good news, he says, is that decreasing the trade deficit creates jobs, and he adds… Read More

Ritholtz on Individual Investors’ Greatest Enemies

Barry Ritholtz of The Big Picture blog and FusionIQ says investors need to know who they are up against when managing their portfolios — and says that to find perhaps the greatest enemy, you don’t have to look far. Writing a guest piece for John Mauldin’s “Thoughts from the Frontline” newsletter, Ritholtz says the first two main enemies investors face are “Mr. Market” himself (who often stands by impartially as cheap stocks get cheaper or… Read More

Mauldin: Markets Overreacting to Middle East Unrest

John Mauldin says markets are overreacting to the turbulence in the Middle East. Mauldin tells Bloomberg that Libya is not a major oil provider for the U.S., and that “in the grand scheme of things all of this will pass”. He also says the unrest could actually have the odd effect of helping balance the U.S. fiscal deficit. [youtube=]

Mauldin: 50/50 Chance of 2011 Recession

John Mauldin says high unemployment and coming big tax hikes are creating a “50/50” chance the U.S. will dip back into recession in 2011. Mauldin tells Bloomberg that means a 40% plunge could hit the stock market, and that investors should treat the current market as a trader’s market. [youtube=]

Be Nimble in this Market, Mauldin Says

John Mauldin, one of the few strategists who saw last year’s market meltdown coming, now says that he thinks the current environment calls for “nimble” investing. Mauldin tells Yahoo! TechTicker that he thinks investors can be traders or “ride the wave” in the current market, but adds, “I don’t think you want to buy something and plan to hold it for five years.” Mauldin is concerned about a double-dip recession, which he says would send… Read More

Mauldin to Bulls: Not So Fast

John Mauldin, the economist and strategist from Millennium Wave Investments, isn’t buying the bullish views many strategists are now offering. In an interview with Yahoo!TechTicker, Mauldin says the market has gotten “way ahead of its fundamentals”. Mauldin says too many are trying to compare this recession to past recessions. “This recession is completely different,” he says. “It’s a deleveraging recession. …. And that’s a completely different animal.” In such a climate, he says, fundamentals are… Read More

Mauldin: This Time It Really Is Different (Sort Of)

In his latest “Thoughts from The Frontline” newsletter, John Mauldin makes a pretty bold proclamation that goes against a long-held principle of investing — this time, he says, things really are different. “If memory serves me, I have written several e-letters disparaging various personages who have uttered those very words, and gone one to confirm later that it wasn’t different,” Mauldin writes. “It almost never is. … But my premise for uttering the heresy ‘This… Read More

Biggs vs. Mauldin: Will The Rally Hold?

The big question in the market these days is, of course, whether the current rally is really the start of a new bull run, or if it is another bear market head fake. And two interesting, differing takes on the topic come from top strategists Barton Biggs and John Mauldin. In a recent CNBC interview, hedge fund star Biggs says the rally could well be for real. As of mid-April, he saw 40 signs that… Read More