While this is clearly a very concerning account of what may lie ahead, there are a few interesting items that need to be considered.
- There is the lack of any counter argument. No matter how accurate and believable it may be, why didn’t CBS have an opposing point of view? Certainly there is someone out there that thinks that there is something wrong with these projections.
- Tilson’s mutual funds have not had an easy time of it lately. In fact, Tilson claims that stocks are now at the best pricing he has seen. He goes on to say that they are at bargain basement pricing and implies that we should back up the truck and essentially buy NOW. How long has he had this same idea? (see below)
- The ending commentary (above) by Tilson appears to contradict his basic premise. If Alt-A, option-arm and commercial real estate are going to show significant foreclosures into 2011, how can the markets, or an investor price that into any reliable model?
From Tilson’s website:
- The Tilson Mutual Funds follow a long-term-oriented, value-based investment strategy, seeking to identify stocks that are trading at a substantial discount to their intrinsic value. The Tilson Focus Fund seeks maximum capital appreciation, while the Tilson Dividend Fund, while also seeking capital appreciation, seeks to generate current income from dividends and selling .