“an ongoing shift in the stock market’s leadership away from high flying concept and momentum stocks into more defensive sectors”

Rich Learning, Enjoyment, and Fun through Conversation

Sherry Turkle, a psychologist and professor at M.I.T., and the author of  “Alone Together: Why We Expect More From Technology and Less From Each Other” opines that, “Human relationships are rich; they’re messy and demanding. We have learned the habit of cleaning them up with technology. And the move from conversation to connection is part of this. But it’s a process in which we shortchange ourselves. Worse, it seems that over time we stop caring, we forget that there is a difference. We are tempted to think that our little ‘sips’ of online connection add up to a big gulp of real conversation…..But they don’t. E-mail, Twitter, Facebook, all of these have their places – in politics, commerce, romance and friendship. But no matter how valuable, they do not substitute for conversation……In conversation we tend to one another….We can attend to tone and nuance. In conversation, we are called upon to see things from another’s point of view.”

Aside from discussing the merits of conversation, I also examine an ongoing shift in the stock market’s leadership away from high flying concept and momentum stocks into more defensive sectors.

I am enclosing two reports. The first report Breakeven inflation – reflation time, and longer-term opportunities? is by my friend Laeeth Isharc who is one of the smartest and most intellectual individuals that I know of. Isharc opines that, “The consensus narrative is ….that inflation is not an immediate problem, and that the central bank knows very well how to defeat inflation once it becomes evident.” He, however, believes that, “these concerns over deflation and weak growth will turn out to be mistaken, that it will be more difficult to control inflation than most anticipate, and that tactically the timing and entry level are right to take the other side of the trade and bet on reflation by entering a long breakeven inflation position.”

The second report is by Jawad Mian who is a fund manager living in Dubai. He started recently a macro fund and a monthly newsletter service called Stray Reflections (jawad@stray-reflections.com). In his most recent reflections he discusses the possibility of shorting US internet and biotech stocks and his views about inflation.

Kind regards
Yours sincerely
Marc Faber