Market Sentiment and Money Supply update: http://www.acting-man.com/?p=31559
James Grant’s Investment Approach (Video) June 12, 2014
Is value investing dead? These managers don’t think so
For quite some time, value has been losing out to growth, and as a result, many have been wondering whether value investing is dead. At the Morningstar Investment Conference, Chuck Bath of Diamond Hill Capital Management, Ramona Persaud of Fidelity Investments and David Wallack of T. Rowe Price offered some insights into their value investing Read More
Jim Grant: Buy Gold
Editor: Focus on how Mr. Grant approaches investing not necessarily the current object of his affections.
James Grant: “The Fed’s policy will inevitably fail because hyper-aggressive leveraged finance always seems to step in front of a bus.”
“Macro-economic forecasting is not a useful endeavor. It seems a better way is to consider the panoply of risks and then after having pondered them, look for mis-priced and cheap options on likely but uncertain outcomes.”
[Note: Grant’s comments on gold begin at the 7:12 minute mark.]
“Gold is an example to me of an opportunity,” James Grant, editor of Grant’s Interest Rate Observer said in an interview this week. “[It] exhibits so many of the characteristics of a corpse, although it does occasionally toss and turn.”
“Gold stocks certainly look as if they were dead—but nobody even bothers to poke them with a stick.”
Gold is a cheap option on the failure of price control. Observe how the future is handicapped. We now have low levels of volatility and terrific embedded complacency. You will be paid well if the consensus makes a mistake. Invest in the monetary failure of an improvised monetary system run by tenured professors (Yellen).
Investing is when you want people to agree with you not now but in the future.
“Gold and gold mining shares are very, very cheap-and certainly widely detested options on the failure of this massive world-wide experiment, or the demonstration of the hopelessness of the technique of price control.”
HAVE A HAPPY FOURTH!