For you or anyone else here. Excuse my ignorance on this, have been almost exclusively in real estate for investing, and while it's been very good to me want to start to diversify a bit. If I had say 25K-50K to play with would this be a good fund to just dump that into? From my initial research I like that I'm betting on the US Stock market basically as a whole and has super low expenses.
I bought some Ford, just because I think the F150 lightning is going to be huge. I'm also thinking of adding to some Chinese stock positions. They're just now reopening from COVID lockdown, and their central bank is easing, instead of tightening. Kinda concerned that strong dollar policy may hamper the China returns, though.
Nothing at the moment but eventually when the Fed pivots Latin America (EWZ,ILF), gold/gold miners, O&G, mining stocks in general, and maybe a select few tech stocks.
SGML babayyyy Kidding, but I do think they’re going to rocket given market demand for lithium and how they’re operating things from a minimally intrusive standpoint. It’s a lithium company based out of Canada that is setting up shop in Brazil and I like their sustainable approach as it concerns the environment. They aren’t fully operational with their plant yet.
re SGML I should stay away from buying stock that is up 209% in the past year… feel like I missed the opportunity there. Been burned many times before trying that. But maybe it’ll keep rocketing
I don’t think he’s far off in the potential for earnings compression to be equally as painful as the multiple compression. I have a pretty good view into the factors that drive multiple valuation in markets, I don’t on earnings. The only thing I am seeing right now is a lot of name brand consumer goods companies saying inventories relative to sales have spiked which is a negative for earnings outlook. Consumers apparently still have record levels of cash on hand but we may be at the part of inflation where consumers have sort of spit the bit on spending as a matter of principle based on their expectation of what a plane ticket, or a vacation, or dinner out should cost vs what it does. Even though they are flush, they are turning off the faucet. What you do to solve that I don’t know, other than continue to try and drive costs down.
I think the above tweets from Jurrien I posted earlier this month are good to review for most. It is all about earnings now, interest rates rising changed the "P" in P/E, now its about the "E" As shown above if earnings come in at expectations then we are relatively fairly valued, if they come in at 0 or even negative we have further to fall. I think we have further to fall.
Also another good article on earnings for people to read, I think it’s generally pretty layman so it’s easier to understand for most.
Just my opinion, trying to say that earnings are going to fall without P/E ratio increasing is too negative of a view. It could happen, but there would have to be a continued negative view on growth (long term recession) to have that happen.
I don’t agree with Burry. I just think it’s petty to make a no qualifying statement to support your uneducated economic theory.
I think framing his current position based on something from over a decade ago vs something from two years ago is telling in what frame you accept.