THE ECLECTICA FUND - DECEMBER 2002
Investment Manager’s Report: Commodity speculator paradise?
We worry about the US economy. Last year it bounced back from the initial throes of recession, registering growth at 3%, but this seems like a poor return on probably the greatest monetary stimulus ever: interest rates were cut from 6.5% to 1.25%, a 2% (of GDP) tax cut and a 12% dollar devaluation. A poor return, in the sense that the “recovery” has been both profitless and jobless, accordingly it lacks any hint of sustainability.