Is the fiscal cliff as scary as everyone says that it is? Ken Mehlman of KKR was interviewed by Debra Borchardt of The Street about the threat of the fiscal cliff and possible outlooks for 2013, and contrary to popular thought he explained that, if you stick to fundamentals, investments during this time might be a very good idea.
“We have found over the years that time like this are actually the best time to invest. If you look back historically at our track record, the periods where there was economic volatility and economic dislocation, we made some of our best investments,” Ken Mehlman explained in the interview. “So we think that this is actually a good time to invest if you focus on the fundamentals. It doesn’t meant that you don’t need to pay attention to these other issues, but the fundamentals matter most.”
Mehlman went on to explain that, while government austerity might have a negative effect in the beginning of 2013, KKR expects that the end of the year will be better for all involved.
“We are generally looking at things getting better as the second half of the year goes on in part because if you look at corporate balance sheets- if you look at the improving housing market- all of these things are trends that we think are positive.”