Monday, May 27, 2013

Do the Math


Or let Grant Williams do it for you.

Your assignment:  watch this video.  But if you are ADD-constrained, at the very least watch Grant's Problem #1, the disconnect between equity valuations in the U.S. and macro-economic reality, a 9-minute piece starting at the 7:30 mark.  Now class, begin.

Takeaway #1:

"Massive central bank intervention makes traditional value investing virtually impossible."

which leads to Takeaway #2:

"Beware suppressed volatility."

[n.b.--"suppressed volatility" is econo-speak for "mindless herd-like behavior."]

No comments: