It appears unlikely that Congress will do anything to delay the Federal budget sequester which is effective March 1. This will impose $85 billion in automatic spending cuts upon the Federal government. For a look at how it will affect the U.S. economy, we begin this week with an overview from Zachary Goldfarb. Next, we have an article by Bob Arnott, who manages the PIMCO All Asset All Authority Fund. He explains how changes in the marketplace influence his investment strategies and why it is important to invest in emerging market bonds. We wrap this week up with an interesting perspective on the markets from Bob Farrell. His ten rules for long-term investors are drawn from over 50 years of experience as a Wall Street analyst.
The Sequester Is Effective March 1 – On that date, the Federal government will face $85 billion in automatic spending cuts to its budget. Here is how the sequester will impact the economy and GDP growth this year. http://www.washingtonpost.com/business/economy/obama-to-press-for-sequester-fix/2013/02/19/e647cd70-7a5d-11e2-82e8-61a46c2cde3d_story.html
Bob Arnott’s Comments On Emerging Market Bonds – This is the February newsletter from Bob Arnott, who manages the PIMCO All Asset All Authority Fund. He gives his perspective on the markets and explains why it is important to have investments in emerging market bonds. http://investments.pimco.com/insights/External%20Documents/Arnott_on_All_Asset_February_2013_PCAAA0010.pdf
Bob Farrell’s 10 Investment Rules– As the markets once again approach historic highs, the overly exuberant tone, extreme complacency and weakness in the economic data bring to mind Bob Farrell’s 10 investment rules. These are taken from his personal experience with dull markets, bull markets, bear markets, crashes and bubbles. http://advisorperspectives.com/dshort/guest/Lance-Roberts-130219-Visualizing-Farrells-Rules.php
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John R. Day, Bill Ennis and Stephanie Davidson