Follow the Leader

Some portfolio managers in these uncertain economic times see opportunities in specific sectors. Others see buying opportunities in a market set to rebound. But John Lekas, founder CEO and portfolio manager of Leader Capital Management, sees an economy in dire straits. His advice to clients: invest in short-term debt and wait for an inevitable quantum leap in interest rates. 'I think in this environment, keeping your shirt is the story line,' Lekas said. Lekas sees a U.S. economy in crisis, the result of efforts by the Federal Reserve under Alan Greenspan, since late 2001, to prevent recession by slashing interest rates.

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