Tuesday, November 01, 2005

Tigger was an Economist

So I have the nick name "Pooh Bear" at work, which was not my doing but the doing of two sweethearts in the office. Nice kids, thus, when one of them was down today I forwarded her a link to a website full of economist jokes and listed on the subject line "Tigger would find these funny" playing off of the inside joke of Winnie the Pooh.

She doubted Tigger was an economist and thus I posed my theory, which turned out better than I had anticipated;

Well, it’s a well-kept secret that in the evening Tigger would moonlight on the side as an economist.

You ever wonder how all those animals could just go about looking for honey or bouncin’ without ever having jobs? And Roo, the single mother, how she got by without alimony or child support? And Eeyore! The donkey is so depressed all the time, you know he ain’t holding down a job. Kind of seems like “Friends” where nobody’s working, but they all don’t seem to be missing a meal.

Well Tigger was the financial engine behind that. You see, he was a savvy investor and established a Winnie the Pooh Mutual Fund with a loan from Christopher Robin’s dad who was an investment banker. Well Tigger knew about indexed P/E ratios and market inference pricing techniques, so he was able to sell out of his tech positions before the crash in 2000.

But what was Tigger’s real stroke of genius was that he was able to see that a slowing economy would lower long term interest rates, which would then lead to a housing boom. He gambled that despite the terrorist attacks and stock market crash, the economy would have endured these temporary hurdles in the long run due to massive restructurings in the early to mid 90’s and the investment in technology infrastructure.

So what did he do? He swapped out all his holdings in technology and invested in REIT’s based here in America.

I think now, Tigger is slowly moving his position from property into developing markets, namely China. I think he’s betting on an inevitable free float of the Yuan.

Whatever the case, with such wise investments, Pooh, Piglet, Rabbit and the whole gang life off of the dividend income from the Winnie the Pooh Mutual Fund.

But that’s just what I’ve heard


Derek Jensen said...
This comment has been removed by a blog administrator.
Derek Jensen said...

Sounds like Tigger tries too hard to time the market. Why not buy and hold a small-cap value index fund? That way you get exposure to all three factors in the Fama-French model.

JTapp said...

How about that link to the economist jokes?

Captain Capitalism said...

Because Tigger is a control freak and can kick the shit out of any mutual fund manager.