Today I spoke with an old friend, Chris Mayer. Chris is the investment director at the Bonner family office. We covered a lot of things including:
- The rise of passive investing and the inevitable consequences of what is almost certainly a bubble.
- How investors are increasingly buying equities and treating them as bond proxies.
- How it’s harder to say which sector is cheap and which isn’t – more than at any time in Chris’ 25 years of investing and why this is the case.
- How we’re in a market which rewards companies for buying back stock and increasing dividends (even to the detriment of the overall financial position of the company) and what Chris focuses on as a consequence.
- Why holding cash is exactly what companies should be doing in this market environment (despite being penalised for it).
- How index weighting is perversely penalising stronger companies relative to their peers.
- Two short ideas he took away from Jim Grant’s recently concluded conference.
- Thoughts on investing in frontier markets.
Direct download link (right-click and choose “Save As”)
Morningstar Investment Conference: What To Do During The Fed Rate Hiking Cycle
The U.S. Federal Reserve is treading carefully with raising rates amid the widespread economic, macro and geopolitical uncertainties sweeping around the world. The Fed raised its target level as high as 20% in the early 1980s to deal with runaway inflation, but we're a far cry from that today — a time when inflation threatens Read More
Enjoy!
– Chris
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“Balance sheet strength is more important than price paid. It does no good to get a bargain on a zero.” — Chris Mayer
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