Whats needed to spur corporate spending and investment?
You’re probably going to need higher capacity utilization. No matter how low interest rates get, corporations aren’t going to spend money on plants and equipment until they feel like there isn’t a tremendous amount of overcapacity. There was so much investment during the [tech stock] bubble that their capacity has grown to levels that are so extreme — it’s going to take some time for them to start investing again. Q: What are your thoughts on the bond market? A: We have a fairly significant position in U.S. Treasury bonds. We haven’t added to it in the Capital Value Fund, but we have added to it in the Comstock Strategy. We have about a 25% position in 30-year Treasury bonds in that fund and about a 16% position in 10-year Treasury bonds. We have a positive outlook for certain bonds — the highest-quality bonds, like government bonds. But we’re not positive on junk bonds. We’re not positive on municipal bonds because state and local governments are in big trouble. Q: What’s wrong with
