November 2008

Defensive Stocks Go Down Less, But They Still Go Down

As surely as day follows night, in a bear market environment, you will repeatedly hear the clarion call to “get defensive,” or to buy “consumer staples”. Ignore this call, individual investor, as it is merely a b-school trope that all the talking heads like to trot out in tough times to justify what they’re doing…

Trust Only The Chefs Who Eat Their Own Cooking

Is there anything more off-putting than the sight of a chef, clad in his whites and houndstooth trousers, looking emaciated and sickly thin? If he’s even an adequate cook or at least a lover of food, should the chef be anything but well-fed?

I would say that investment professionals should be held to a similar standard. If someone holds themselves out to the public as a brilliant stock picker, a steward of capital, or a talented manager of money and assets, should we not inquire as to how much of their own capital is at risk in the same investments or strategies that they are propounding or endorsing?

Bear Hall of Fame

The Bear Hall of Fame is not necessarily a list of perma-bears or doomsayers, rather, it is a place to honor those who have made a name for themselves with prescient or controversial¬†bearish calls in the media, in academia or on Wall Street. Names, Photos and Details after the Jump…and yes, Meredith Whitney’s picture is…