Mr. Fuss spoke to a number of pivotal current topics that have dominated global markets in recent times. One highlight included a discussion about the increasingly unsettled Mediterranean region. In particular, Greece is faltering, North Africa and Syria are experiencing popular uprisings with unclear geopolitical implications, and the potential for conflict between Israel and Iran is intensifying. Furthermore, he related from his naval experience in the 1950s that America does not project the same presence in the Mediterranean today that it did immediately following WWII. With a power vacuum in the region and nations around the world competing for access to energy, the region is decidedly not as peaceful as many people believe. These developments have implications for investors.
More specific to fixed income investing, he argued that Treasuries and investment-grade corporate bonds are not very attractive at current yields, and that equities, may be a better alternative on a relative value basis. Lastly, he touched on some of the headwinds that the US faces going forward related to our deficit, our education system, and other crucial topics that need to be addressed sooner rather than later.
