Our long-held conviction that the economy can't sustain rapidly rising interest rates remains intact. The main reason for this is the sheer amount of debt in the system and the average consumer's undesirable financial situation ... if the economy starts showing signs of weakness, then the question begins whether the Fed will continue tightening monetary policy. If it stops and we try again to artificially induce growth, then excessive speculation will remain the only game in town, eventually leading to a spectacular collapse of the financial system.
Elliot Gue, Ivan Martchev and Yiannis Mostrous, WSW
Wall Street Winners, edited by the troika of Elliot Gue, Ivan Martchev and Yiannis Mostrous, is the kind of letter that appeals to nerds like me because of the elegance of its arguments.
... According to the Hulbert Financial Digest, over the past three years ( roughly corresponding to the current editors' tenure), the letter's average portfolio appreciated at 7.2 percent annualized, vs. 6.4 percent annualized for the dividend-reinvested Wilshire 5000.