Sunday, November 22, 2009

A Contrarian Money Manager's Case For A Slower Growing U.S. Economy

Much has been made recently about the U.S. Dollar and its use in the carry trade. Consuelo Mack of WealthTrack recently interviewed Robert Kleinschmidt, President and Chief Investment Officer of Tocqueville Asset Management and portfolio manager of the Tocqueville Fund. In the below video, Kleinschmidt discusses where his contrarian investment philosophy is leading him now and why investors should be concerned about U.S. government debt and the future of the dollar.

Kleinschmidt believes the government's action of bailing out AIG, TARP etc., actually contributed to and worsened the global financial crisis. He also believes the U.S.'s actions have jeopardized the dollar's status as the world's reserve currency. Lastly, Kleinschmidt believes the U.S. economy will look more like a European one where growth is in the 1-2% range and results in unemployment remaining in the 10% range for the foreseeable future.


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