In normal times, investors should pay more attention to the credit markets because it's the energy by which everything is driven. It's the oil in the engine.
Sentiment: NEGATIVE
More and more investors may be coming into markets everywhere but that doesn't mean that the markets are really getting more and more efficient, even in the United States. It does mean that there is more access for savvy investors who watch the money flows.
The market we're going after is the clean-energy market.
I believe that the market is slowly waking up to the fact that the Federal Reserve is a clueless organization. They have no idea what they're doing. And so the confidence level of investors is diminishing, in my view.
Simply put, investors should own less equities, more bonds, more global investments, more cash and more dry ammunition.
You know, when the cost of capital goes down, when credit becomes cheap, people start taking greater and greater risks.
To the extent that bank panics interfere with normal flows of credit, they may affect the performance of the real economy.
Individual investors have become far more powerful than anyone gives them credit for. Today, 85 million Americans invest in stocks. Collectively, that kind of buying and selling power can move markets.
Instead of mindlessly tossing billions at or taking billions from the Net as such, investors should be spending their time making sure that it's the future Fords and General Motors of cyberspace that are getting the capital they need.
Let me remind you that credit is the lifeblood of business, the lifeblood of prices and jobs.
Every central banker in the world pays attention to credit growth, but not in the U.S.