Eureka’s Five Year Anniversary

Time flies and the big things don’t change that much.  Since January 22, 2008, the macro issues that led to the crash in 2008 have been papered over and little things have improved but we are not out of the woods.

Joseph Stiglitz says it well in a recent NYT article. ” The growth in the decade before the crisis (1996 – 2007) was unsustainable — it was reliant on the bottom 80 percent consuming about 110 percent of their income.”

see article here:  http://opinionator.blogs.nytimes.com/2013/01/19/inequality-is-holding-back-the-recovery/?smid=pl-share

A second article that also deserves a good reading on this 5th anniversary is Fed Governor Richard Fishers view of cutting the megabanks down in size.  Mr Fisher , for me, is a breath of fresh air in the middle of a lot of hot air in the Fed.

http://www.nytimes.com/2013/01/20/business/a-fed-voice-asking-to-cut-megabanks-down-to-size.html?smid=pl-share

So for me, how did the Fed and the Government try to fix the problem that Stiglitz identifies?  They gave money to the banks though bailouts and cheap interest rates that the banks did not pass on to the people.  We still have a lot of work to do to get the middle and lower class back to a level of sustainability in terms of income growth.

So in the meantime our view is that investors should remain defensive in spite of all the hot talk coming out of Washington and Wall Street.

No change in the Numbers since the first listing on 1/16/13.

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