John Burbank, founder of Passport Capital LLC, and Scott Shellady, senior vice president at Trean Group, talk about investment strategy, and the outlook for second-quarter earnings and U.S. stocks. They speak with Adam Johnson and Stephanie Ruhle on Bloomberg Television’s “Lunch Money.”
Burbank says rates will stay longer ‘than anyone expects.’ He is long treasuries.
He thinks the EU should be glad that the Euro is declining in value.
He likes large liquid and dividend paying stocks. Or stocks with secular growth, which do well in a deflationary environment; however, it is hard to find these companies. However, most of these companies are in the US.
On the short side: short illiquid and small caps, companies with bad corporate governance, and commodity companies.
Some other quotes:
“I like the dollar in a deflationary world.”
“We’ve been predicting a bear market for the last six months.”