The exit strategies for governments that have been fueling economies with easy money and low interest rates in order to jump start growth are struggling to find a way out…the surgery is over but now the patient is addicted to pain killers. It seems like the reckoning day is getting closer and it´s causing a lot of commentary and concern. For example, concern that loans made in last year’s record 9.59 trillion yuan ($1.4 trillion) credit boom may go bad. The dilemna is that continuing low rate expectations imply a weak economy. The markets are still getting it both ways; counting on record-low interest rates and a V shaped recovery. The concern is that if we can´t have it both ways, then something has to give. Thus, a correction and perhaps a serious one. The flip side is that investors don´t want to sit on the sidelines while markets, especially emerging markets, roar ahead. A lot of CR Investment Advisors clients have purchased shares in the last few months after they have already risen 50 or 100% or more (year on year), but the majority of their portfolios are liquid in cash. This is appropriate. We are steadily stepping into markets while being prepared for a correction. The correction, if it comes, is an excellent opportunity to buy and lower our average price per share. In other words, we are walking with purpose and caution. That´s good investing.

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As Johnny Says, "Keep Walking!"