"The government is adopting a Bear Stearns/Lehman Brothers type of funding model. It has enormous long-term liabilities and yet we continue to fund it short…This is not sustainable in my view and just looking at 'Simple Simon' economics, it’s hard to increase anything by six times and not see the price go down.”
Coca-Cola —"It’s a global brand—generates an enormous amount of cash and pays a dividend, which is going to be very important in an environment where equity returns will be somewhat lower," he said. "I do think these are tremendous cash flows and enormous foreign exposure."
Schlumberger —"We feel very strongly about the energy and basic materials sectors," he said. "If China continues to keep its foot on the accelerator, then we think oil prices will stay sustainably high. And Schlumberger is going to do very well and relatively well if oil prices are high and steady."
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No immediate information was available for Trennert or his firm.