Thursday, October 19, 2017

Truth and Political Correctness

"Today's politically correct society prefers to waste its time with tearing down important historical monuments that are a reminder of our history, even if it was not always glorious. Important issues such as how we are going to resolve the problem of excessive debts and enormous unfunded pension fund liabilities, etc are ignored or neglected."

"If stating some historical facts makes me a racist, then I suppose that I am a racist."

Monday, October 2, 2017

October 2017 Monthly Commentary

In mid-May 2000 (17 years ago), my friend George Schott, in a contribution for the Gloom Boom & Doom report (the title of the GBD report was The Coming Vindication of Value Investors) wrote under the subtitle, "Ramp Champs" that the April 3, 2000 edition of Forbes Magazine, which unintentionally presaged the NASDAQ's worst week in its history, published an article entitled, ‘Ramp Champs: The Best-Managed, Fastest-Growing Tech Companies in the World.’

A month later these stocks had already declined by 66% from the early 2000 highs, and at the October 2002 low, the NASDAQ 100 Index had declined by 83% from the March 2000 high.....

In early 2000 a huge change in stock market leadership occurred. The TMT sector entered a historic bear market, while old economy stocks began to outperform. However, the transition was not smooth but turbulent because although the old economy stocks outperformed the TMT sector and the NASDAQ Index they were under pressure from the unfolding 2000 to 2003 bear market (the Dow Jones Industrial average fell from the January 2000 high to the October 2002 low by 39%).

It is therefore, important to keep in mind that in a bear market even the stocks which will be the future leaders face powerful headwinds coming from the value destruction that bear markets bring along. There are numerous similarities between the 2000 TMT bubble and the current US stock market bubble. However, whereas the 2000 bubble was concentrated in just the TMT sector the current asset bubble is just like SPECTRE (Special Executive for Counter-intelligence, Terrorism, Revenge and Extortion) everywhere – admittedly to lesser degree in some asset classes. The 2000 NASDAQ collapse - because of its narrow scope - did not cause widespread economic or financial hardship. This cannot be said of the current all-encompassing asset bubble. Whenever it will burst, the economic damage will be considerable all around the world as well as the capital losses to asset holders as there are hardly any places to hide. 

via gloomboomdoom

Tuesday, August 22, 2017

India could be the second largest economy in 20 years

According to PwC (PricewaterhouseCoopers), the auditing firm, India is basically going to be the second largest economy in the world in 20 to 30 years. I know lots of wealthy families who have hardly any exposure to India at all. But in my opinion, foreigners who have no money in India have made a mistake. Now, should they invest when the index is at 32,000? 

Well if they don't have any money in India, then I would at least invest a little bit at 32,000 but have a disciplined program that if the market declined, I would buy more and not sell if it goes down.