Federal Stimulus Missed Key Infrastructure Opportunities

The National Bureau of Economic Statistics has declared that the recession ended in June 2009, eighteen months after the downturn began in December 2007. The recession was the most severe since the Great Depression of the 1930s both in terms of duration and contraction in GDP. Fifteen months after the recession ended, GDP has yet to achieve the peak levels of the prior expansion and unemployment remains elevated. The Wall Street Journal’s article covering this topic includes relevant statistics and graphs that put the recession in historical context. Read this article for additional commentary and analysis.

Buffett Sees Broad Based Economic Recovery Ahead

Warren Buffett is not buying into projections of an imminent “double dip” recession and sees a broad based economic recovery ahead. Berkshire Hathaway’s diverse collection of operating companies gives Mr. Buffett a unique view into the health of the overall economy and he has frequently commented on overall economic conditions over the past few years. Read this article for more details.

Small-Cap Stocks Outperform Coming Out of Recessions

In a very interesting article that appeared recently on Advisor Perspectives, Michael Weiss and Yuliya Tarasava examine the tendency of small capitalization stocks to outperform larger companies in the period when the economy is emerging from recession. While the article focuses on broad asset allocation questions rather than individual stock picking, the topic has relevance for value investors because it suggests that small cap stocks deserve more careful attention during recessionary periods. Read this article for more details.

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