Thursday, September 17, 2009

Ken Fisher says we're UNDER-leveraged.

AlphaNinja - For a HUGELY contrarian view, below is an interesting take from Ken Fisher. Personally, I've never met a current or former employee of this man who's had good things to day about him. I've been to a Fisher Investments holiday party and it was basically a bad frat party. This guy is a master asset-gatherer, and does not create value for clients.

That said, his view on the apppropriate level of debt for this country is interesting -->> he's saying that with our high return on assets, we should go ahead and borrow cheaply if we can invest it at higher profit rates. Kinda similar to say, IBM. If they can borrow at 5% and they're return on capital is historically north of 10%, they'd be dumb not to do it. Then again, they're not borrowing on behalf of the entire country.

Fisher's thoughts:

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