Next week we are going to continue with our thoughts on central banks, but focus on the Jackson Hole speeches and activities. A lot of what came out of that august gathering has helped me to realize that we are truly in a world where the unthinkable is now thinkable. Maybe I am just sensitive to it, but ever since I wrote that letter, I have seen the word unthinkable entering more and more into the discussion. Then again, I often use a concept in a letter and am then reminded that somebody else wrote about it six months earlier, and it just entered my mind and gestated there, which is what good concepts are supposed to do.
Denver, Denver And Dallas
I will be in Denver on September 14 for the S&P Dow Jones Indices Denver Forum. If you are an advisor/broker and are looking for ideas on portfolio construction, I will be there along with some friends to offer a few suggestions. Then I will stay in Denver for the next few days to give the closing keynote at Financial Advisor magazine’s 7th annual Inside Alternatives conference, where I will again share my thoughts on how to construct portfolios that are designed to get us to the other side of the problems I see coming in the macro world. Bluntly, I think that portfolios constructed along the traditional 60/40 model are going to cause their owners significant pain in the future. And if you think the recovery has been slow this time, then you will not appreciate the snail’s pace of the ne xt recovery.
Sometime in the fourth quarter I will go public with what I think is an innovative way to approach portfolio construction and asset class diversification.
I’ve been thinking about this new “Mauldin Solutions” portfolio model for a very long time, and now we are putting the final touches on the project. While the investment model itself is relatively straightforward, all of the details involved with making sure that the regulatory i’s and business t’s are crossed (the stuff that has to happen behind the scenes) are far more complex. Plus, as you might guess, there are white papers to write and web pages to construct.
I am now fully operational, at least computer-wise, and hopefully can spend the next few days paying attention to the 415-odd emails in my inbox and whittle them down to under 30 over time. I will admit that the fuller my inbox is, the higher my stress level is; and over 400 is about as high as it has got in many, many years. And with that said, I think I will go ahead and hit the send button and wish you a great week.
Your frustrated with central banks analyst,
John Mauldin
John Mauldin is editor of Mauldin Economics' Outside The Box.
This article was originally published at Mauldin Economics.