Thursday, December 18, 2008

For GT Blog December 19, 2008

Here is a strategy for 2009 that may isolate you somewhat from systematic risk which is the market risk associated with equities.

I am referring to the dominant theme.

A dominant theme is usually associated with a long term secular trend that tends to ignore the smaller boom and bust business cycle. A secular trend is usually associated with innovation and the emergence of the "next big thing", be it the age of steam, the railroads, the automobile, transatlantic air travel, the microprocessor and the Internet.

The recent energy crisis triggered demand for fuel efficient aircraft, transit and railroad sectors. This is a global phenomenon with the big loser being the auto manufactures. Now pile on the global financial crisis and North America is facing massive job losses in the manufacturing sector. This crisis has in turn, Federal, state and provincial governments reacting by stimulating their economies with spending on Infrastructure.

Out dominant theme for 2009 is Infrastructure
This is one of several names to look at - contact your advisor

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