David Dreman on CNBC: Discusses Inflation, The Fed, Stocks and Real Estate

David Dreman on CNBC: Discusses Inflation, The Fed, Stocks and Real Estate

David Dreman was on Cnbc yesterday. Dreman surprisingly is not too popular a name in the value investing world compared to others like Schloss or others. However, he has a great long term track record, and I think his books, which really rip apart the effecient market theory, and prove through numerous research the value in low pe, pb, p/cf, and p/d stocks should be required reading for all value investors.

I got the chance to interview Dreman in person about a year ago, if anyone is interested in seeing it click here.

Back to the video:

Hedge fund thesis for Spirit Airlines and AerSale, a recent SPAC merger

AirlinesPrescience Partners returned 6.75% for the second quarter, underperforming the S&P 500's 8.55% return but coming out ahead of the Barclay Equity Long/ Short Index's 2.62% return. However, for the first six months of the year, Prescience is up 30.66%, doubling the S&P's 15.25% return and smashing the Barclay Equity Long/ Short Index's 9.27% return. Read More

Dreman thinks inflation is a risk, which puts him in the same camp as Seth Klarman (and myself)! Seth Klarman stated that using 1980s methodology inflation is currently at 8.5%, and 1990s at 4.5%.

Dreman does not trust Bernanke to deal with inflation, as he has been wrong in the past.

Dreman is bullish on real estate, as he has been for over a year.

He does not predict when real estate or inflation will pick up, but will think sometime in the next few years it will.

He thinks that even with the market rich, if you stick with low pe, low pb stocks you will do well, since these stocks have historically outperformed the broad market.

Dreman is not a fan of commodities, but it is impossible predict their future movement.

Below is the full video:

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