I know many of you are frustrated watching the markets recently. It becomes very tempting to join the crowd of pump monkeys when you see irrational exuberance in the markets.
Here is an excellent reminder on investing from Howard Marks in a letter he sent out to his Oak Tree clients. Howard reminds us that managing risk is as important as making returns on investments.
The government is blowing another huge bubble via stimulus and zero interest rates. We have seen this game over and over again in the past as Howard describes and it always ends in tears.
Huge hat tip to Zero Hedge for sharing this:
Open and Shut 12_01_10 -