Thoughts from the Frontline

Rules of Engagement

By John Mauldin

October 4, 2001

Rules of Engagement
All’s Turbulent on the Investment Front
Positively, Absolutely Relative
Mean Lean Reversion Machine
Economics 101
And Much, Much More, of course

Today begins a two part series on a framework for investing when the economy starts to recover. It is my belief that investors need to have a consistent philosophy of investing when choosing investments, otherwise your portfolio looks like the local dog pound: a few lonely purebreds mixed in with a lot of mutts. Some of the mutts end up becoming your best friend, but mostly they just mess up the place.

Within my suggested framework, you will have lots of latitude to tailor your portfolio to your specific needs, but what I will be suggesting is that the times are changing, and you need to change with them. (And yes, I cover that important economic report in detail, as promised last week.)

As far as the economy this week, not much has changed. Japan just gets worse and Europe is getting weaker, which means the…

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