The Polar Letter
1-13-2012
THREE PLUS
DECADES OF LIVING BEYOND OUR MEANS
One of the great mistakes is to
judge policies and programs
by their intentions rather than
their results
MILTON FRIEDMAN
Of late, numerous financial commentators, investment
professionals and analysts have opined that the
world’s equity markets are oversold and undervalued
at these levels.
We do not agree. Last November we expressed and
opinion that “your wealth has probably never been in
more danger.” It has taken decades of reckless
greed, irresponsibility, and mismanagement on all
levels (governmental, regulatory, financial
institutions, and indeed individual investors) to
create this mess. We do not believe that this
situation will be markedly improved in the course of
the foreseeable future. Indeed, unbelievably, in our
view, absolutely no meaningful political or
regulatory steps have been taken to address the
underlying problems. Instead, the government has
embarked upon a series of so-called stimulus
“adventures” to address matters beginning with what
we referred to as “bailout number one” in an October
2008 letter. These stimulus and quantative easing
plans have been the “life support” of the equity
markets and at a cost of additional trillions in
federal debt, while doing nothing to stimulate the
economy or job markets (except perhaps in the
government sector).
Until this situation changes we are unlikely to see
the equity markets as undervalued. We would be
pleased to discuss our opinion with any of our
readers either via email or telephonically.
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Michael C. Jordan
President
Professional Biography
Polar Investment Counsel Inc is a federally registered
investment advisory firm and
broker dealer, which manages
customer accounts on a fee or commission basis.
The firm’s
senior principal, Michael Jordan, has nearly thirty-five
years of industry experience.
Note: The views expressed above are those of
Michael C. Jordan and not that of PICI. The material
presented is based upon information believed to be accurate,
but not guaranteed.
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President's Corner