Tim Price: In Flagrante Delicto

Tim Price of The Price Of Everything has written a good summary of current market conditions that reflects pretty closely what I think is a sound portfolio approach for the year that is shaping up. Here is the start:

In flagrante delicto

“A financier is a pawnbroker with imagination.” – Arthur Wing Pinero.

Warren Buffett once admitted that if a graduating MBA were to ask him how to get rich in a hurry,

“I would not respond with quotations from Ben Franklin or Horatio Alger but would, instead, hold my nose with one hand and point with the other toward Wall Street.”

That career advice comes from a more innocent, pre-subprime age. ‘Wall Street’ is, of course, no longer geographically distinct, but a global phenomenon, just as the infection triggered by the explosion of a giant credit (and housing) pustule has spread seemingly indiscriminately and certainly internationally, attacking mortgage lenders, investment banks, portfolio managers and money market funds alike. Norwegian townships, Australian hedge funds, Floridian public fund pools – all tainted by products originated by Wall Street.

Price's suggestions are similar to those of Donald Coxe in his December Basic Points