tag:blogger.com,1999:blog-5465015914589377788.post8518317250985544892..comments2024-02-17T11:07:06.232-05:00Comments on Michael James on Money: “The Cult of Equity is Dying”Michael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-5465015914589377788.post-14552380456318410612019-12-09T13:23:40.267-05:002019-12-09T13:23:40.267-05:00Here is Patrick's comment after removing a bro...Here is Patrick's comment after removing a broken link:<br /><br />...and Michael is not the only one who thinks Gross forgot the dividends. Jeremy Siegel has said the same thing.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-40536993151042717752012-08-09T15:12:57.995-04:002012-08-09T15:12:57.995-04:00Correction - a lot of pension managers probably do...Correction - a lot of pension managers probably do understand this, but their pension plan wouldn't work if they admitted to it.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-69692924909259988102012-08-09T15:11:08.705-04:002012-08-09T15:11:08.705-04:00True. Siegel's explanation is obvious in hinds...True. Siegel's explanation is obvious in hindsight... if stocks get more than GDP growth and bonds get less than GDP growth in a compounding way, we'll end up with one guy owning all of corporate america and one guy holding a $1 bond. Obviously this is not where we're headed.<br /><br />As for the pensions, they've probably ignored far more frequent and dire warnings. At this point it's not the boy who cried "wolf". More like saying "you know, there's this picture online of a dog growling but you probably don't care". If us amateurs understand the conclusion (and we're not just playing games), the people who are paid well for it should know that much and more. <br /><br />For all the times that marketing inflates a meaningless message, maybe this time a good message is hidden behind marketing.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-60056779627771267112012-08-09T09:40:00.478-04:002012-08-09T09:40:00.478-04:00@Patrick and @Anonymous: I watched the video of S...@Patrick and @Anonymous: I watched the video of Siegel's critique of Gross's argument and then watched Gross's response. Gross simply ignored the substance of Siegal's criticism. Either Gross isn't taking any of this seriously, or he knows that he wasn't making sense. <br /><br />The sad part is that Gross's excellent point that pension funds should not be counting on huge returns is lost among his nonsense Ponzi scheme related remarks.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-21942425960308186052012-08-09T01:48:56.303-04:002012-08-09T01:48:56.303-04:00Another part of his argument seems to be that &quo...Another part of his argument seems to be that "stocks have gone down, so they will do poorly in the future". Unconvincing words from someone who sells bonds! I was a bit surprised when he pointed out the obvious that bonds can hardly do much better starting from record low yields.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-87628039878210153582012-08-07T14:14:57.466-04:002012-08-07T14:14:57.466-04:00@Patrick: Thanks for the pointer. The point abou...@Patrick: Thanks for the pointer. The point about dividends seemed so obvious that I couldn't see how it could be wrong.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-43594817083372997812012-08-07T12:57:44.316-04:002012-08-07T12:57:44.316-04:00This comment has been removed by a blog administrator.Patrickhttps://www.blogger.com/profile/16816252455472704262noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-12310586635093260842012-08-02T10:03:39.160-04:002012-08-02T10:03:39.160-04:00@AnatoliN: It's up to you whether you base yo...@AnatoliN: It's up to you whether you base your decision on the arguments presented or on credentials. I would certainly like to hear what Gross has to say about my argument.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-23453947064697328572012-08-02T09:10:02.862-04:002012-08-02T09:10:02.862-04:00I am afraid I have to disagree with your statement...I am afraid I have to disagree with your statement that Mr Gross's argument contains a flaw. <br />He is well educated, well informed and experienced investment manager leading a company for 40 years and overseeing $1.7 trln. He received numerous awards while doing all this. He could not possibly have made such a mistake. Nevertheless, I tend to agree with your common sense argument.<br /><br />There is only one nuance in Gross's credentials: he works in fixed income securities, everything related to equities is his lifelong competition. Therefore, his "insight" argument contains not a flaw, but a carefully crafted commercial for his business.AnatoliNhttps://www.blogger.com/profile/07937984526970646627noreply@blogger.com