FPA's Steve Romick - There Is No Reason to Think the Fed Knows What It Is Doing
- Romick describes himself as a value investor and his fund as a "go anywhere" fund, as in he will invest wherever the value exists.
- He is having a hard time finding investments that allow for a margin of safety, therefore his fund is holding a lot of cash.
- Romick is uncomfortable with what the central banks are doing around the world.
- He reminds us that these central bankers are the people who did not see the housing bubble, and told us that Fannie Mae and Freddie Mac were fine. In other words, there is no good reason to think they know what they are doing with all this money printing.
- The Fed has made a trillion-dollar bet; the ultimate outcome of this bet is yet to be determined.
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Steven Romick (Updated on 05/20/2013)