Today, we bring you an interview with Roland Manarin, founder of Manarin Investment Counsel and Manarin-On-Money. Below, he shares his thoughts on risk management and the EU Sovereign Debt Crisis, among other topics.
Forex Blog: How would you summarize your general approach to investing?
In the management of retirement assets, I subscribe to global diversification using low-cost, asset-class funds that adhere to Modern Portfolio Theory. From an economics perspective, I follow the Austrian model.
Forex Blog: Which risks do you currently perceive as most problematic and which are therefore most important to monitor?
There are always risks but for me a concern is the massive amount of malinvestment in the world financial system. What�s the next spasm to show up? A bond bubble burst? A major shift in velocity shooting inflation upwards? I�m no good at trading, and in today�s world I wonder if anyone is. There is no one investment plan that is safe but some are safer than others.
Forex Blog: What is your assessment of the sovereign debt crisis in EU?
I stress broad diversification because I think the world�s financial markets are in the hands of major risk-addicts so as an investor, I must be prepared for anything. I could be wrong, but it appears we are nearing the collapse of the European welfare state.
Forex Blog: Are you optimistic about the near-term prospects for US economic recovery?
I want to be but what shakes my confidence is America being on the same road as Europe.
Forex Blog: Do you think the Fed is close to raising interest rates?
Who knows? If you can tell me what moves Bernanke and Co. are going to make in the near term, I would feel very good about where to invest my money for maximum return. But we don�t so everything is just a guess.
Forex Blog: Do you think there is a risk that failure to unwind its quantitative easing program could drive inflation?
I think malinvestment and currency debasement could drive inflation.
Forex Blog: Considering the recent surge in volatility, what approach do you think Central Banks should take to managing the value of their respective currencies? Do you think intervention is necessary/desirable?
The federal government/Federal Reserve model of intervention typically follows a simple model: Tax, spend, borrow, print, subsidize, regulate, go broke. I don�t think that would be desirable.
Forex Blog: What�s your advice to investors that want to beat the market during this period of uncertainty?
Don�t try. Few pros have the long term track record of outperforming the market. Instead adopt a simple, diversified plan that will allow you to get through this historic turning point we are living through in fine shape.
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