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Freaky Friday Potpourri: Flat is the New Up!

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Considering the carnage, static net worth and preservation of capital is now considered pretty snazzy.

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Does anyone else feel like they're fighting for their life?

You would be hard pressed to find a community that was better prepared for the current environment than we were in the 'Ville.

In 2006, we warned of a "prolonged period of socioeconomic malaise… entirely more depressing than a recession."

In 2007, we offered that sub-prime mortgages were the first domino to fall and the other side of zero-percent financing would manifest through credit card delinquencies, auto loans and other forms of consumer credit deterioration.

Entering this year, we readied for deflation and dislocation as debt and derivatives danced towards their death spiral.

We sat in cash and patiently waited for the process of price discovery to play out through the arbiters of time and price.

We played the bounces but were quick to take trades.

I don't highlight these views as a victory lap. That's not how we roll in the 'Ville, particularly when so many people are feeling the pain.

Rather, it's an attempt at perspective, as we must remember not everyone was prepared for this perfect storm. For many, the point of recognition arrived like a clap of thunder.

Sellers to the left of us, layoffs to the right, here we are stuck in the middle with Boo.

Minyanville Advisory Board member Wenda Harris Millard, a savvy and respected seer in the business community, recently said at a conference "Flat is the new up." She was talking about advertising sales revenue but we can extend her wisdom across the entire business spectrum.


Flat returns in the fund community are widely considered a win.

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No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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