Monday, September 12, 2011

Money Show, Jim Jubak

Jim Jubak is a stock picker and analysts that is often with the Money Show. He is the Editor and Founder of He is also Senior Market Editor for He was a speaker in the Opening Ceremonies. His talk was called 2013 – The Year when the Bills Come Due from Beijing to Washington to Frankfurt.

Jim is very worried about 2013. Currently we have Greek government debt at 53%, the US government debt has been downgraded, Japan debt also has been downgraded, but no one noticed, and we have inflation rearing its head in China and Brazil.

Solutions to problems, especially in US and Europe have not really been solutions, but just delays. There will be another Greek rescue. The US debt ceiling was “fixed’ with cuts back loaded to 2013. Brazil is dreaming that lower inflation will come with a global slowdown.

He feels that Greece will default and with this will come the erosion of the ECB (European Central Bank) and unpredictable bank defaults. He feels that France will be hit hard.

In the US he thinks that reducing the deficit will just become harder. The economy will slow down into a recession. Real Estate is still underwater in the US. Lots of the unemployed have been unemployed for 18 months and may have their skills become obsolete. He thinks that the US risks a 2nd downgrade by another rating organization.

For Brazil, they just have had a big increase in their budget. They are risking runaway inflation and the deficit is just getting higher.

China is postponing their bad loans problems. These bad loans are to local government owned and state-owned companies.

He sees stock market rallies in 2011 and 2012, but they will not be sustainable. He thinks we should be in dividend paying stock and just stick it out through the coming turmoil.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.

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