Tag Archives: Equities

Because You Know I’m All About That Base, ‘Bout That Base, Base Metals…

People tend to get preoccupied with things that are shiny. Investors often fall prey to the same instinct – especially those that are obsessed with gold. Such people are often referred to as ‘Gold Bugs’.

This years, Gold Bugs have been excited to point out that gold has outperformed the S&P 500 index year-to-date:

Congratulations! However, there is a far more interesting metals trade going on at the moment: base metals.

After a slow start to the year, base metals such as copper (sometimes referred to as “Dr.Copper”), zinc, and nickel have seen their prices appreciate significantly:

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Global Earnings Are On The Rise

Day to day market movements tend to distract investors from underlying factors that create powerful long-term trends.

Fundamentally, equities are priced off of anticipated earnings. Investors can get ahead of themselves in anticipating the actual degree of earnings acceleration, but higher earnings are the simplest and most fundamental driver of higher stock prices.

As such, we should not be surprised by the move that is currently going on in global equities:

LINK: Global Earnings

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Amsterdam – Thoughts, Impressions, Inspiration

Rembrandt van Rijn – The Militia Company of Captain Frans Banning Cocq (also called: The Night Watch), 1642

Last week I was in Amsterdam for the Citywire Global New Ideas conference.

Since Riga is off the beaten path for most fund management companies, events like this give us the chance to meet with fund managers from all over the world and to get a better feel of the market zeitgeist by talking with our European peers.

From an idea perspective, I find that one out of three presentations actually deliver. Some pitches from mutual fund companies are shockingly bad, others can border on the brilliant.

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