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Writer's pictureSteve Martin

Just Say No to Crystal Balls – Inside Information

The following is a blog by Bob Veres, one of the most respected voices in the world of financial advice.  I suggest that you pay attention to his view of those with “Crystal Balls”.

Steve ===================================

Why are we giving our attention and mindshare to things that offer nothing in return?

As I write this, the U.S. markets have been bumping against all-time highs as if they are some sort of ceiling, the emerging markets and their stocks are really struggling, oil and gas are cheap, China’s economy is facing a lot of hurdles and, well, this is exactly the opposite of a lot of what Mohammed El-Erian was predicting in his very well-written and thoughtful book “The New Normal.”

And, of course, El Erian was not alone. In the wake of 2008, it seemed like the world’s future growth would come from the countries that had the farthest to grow, and the economic model that we were familiar with would labor mightily against the forces of demographics, diminishing energy supplies and a certain ossification in the way developed nations do things. The predictions were highly-plausible–and dead wrong.

I found myself wondering about El-Erian’s return to Pimco, whether he was hired, in part, to predict the future in a very public way and gain a lot of media attention that would position his firm as a thought leader which he did very successfully.

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