Jump to content

Ben Bernanke: Slayer of Value Investors


bmichaud
 Share

Recommended Posts

Guest wellmont

so instead of relying on valuation critera, he asks us to pay attention to "macro" and human behavior. As if that is easy to predict. His entire assumption is based on his presuming to know exactly what the macro picture is, and how investors are going to behave in the future. In other words his advice is the total opposite of Buffett's approach, and advice to people who invest money. the author is a "hussman" bear.

Link to comment
Share on other sites

so instead of relying on valuation critera, he asks us to pay attention to "macro" and human behavior. As if that is easy to predict. His entire assumption is based on his presuming to know exactly what the macro picture is, and how investors are going to behave in the future. In other words his advice is the total opposite of Buffett's approach, and advice to people who invest money. the author is a "hussman" bear.

 

Didn't he blow up his fund as well? and then moved to a macro approach

Link to comment
Share on other sites

 

Investing involves consideration of the opportunity cost of capital. Over the long-term, equities will be by far the most attractive asset class where ever interest rate levels are.

 

So you can either stay invested in equities at these relatively lofty levels or earn almost nothing on fixed-income investments or even worse, completely nothing on cash. Faced with these options, I think the choice is fairly obvious for the value investor.

 

Btw, this is my first post on this forum. Have lurked here for a while and finally decided to plunge in!

Link to comment
Share on other sites

The article is complete garbage. Pretending to not "know" what true valuation metrics mean is just a cover to pitch a macro approach.

 

I like his economic analysis, but whenever he ventures into the investment side of things I'm not a fan.

 

I agree i dont consider myself a monetary realist but I enjoy Cullen's insights. However, I thought this piece was very weak for many reasons, least of which is he only referred to market valuations not stock specific valuations.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...