Wednesday, April 26, 2017

I can be wrong sometimes says Dennis Gartman

I trade only for my own account so I think that's important. What I write in my newsletter, is what I am doing. I am up 5 percent up for the year. Do I get things wrong ? Yes absolutely. 

The important thing to do is, not to stay wrong. And I try not to stay wrong for very long periods of time. The only thing that will take you out of this business is getting something wrong and adding to it, doing more of which is wrong. I have a very simple idiom, lets do more of what has been working and less of what has not. If you do that in life you will succeed, if you do that in investing, you will succeed.

Tuesday, April 25, 2017

100% income tax proposed in France by Melenchon


Mr. Melenchon has gone out of his way to prove his far-left-of-centre bona fides by announcing that he wishes to increase the marginal tax rate on the wealthy in France violently, and has proposed a rate of 100% on incomes above €400,000, or approximately $425,000 at the current EUR/US$ exchange rate.

What is disconcerting is that no one in France is laughing at the stupidity of this proposal and many are actually applauding.

Monday, April 24, 2017

I want to buy Steel and Infrastructure stocks

Businesses in the US are actually doing well. If you get out of New York, if you go to Virginia Beach, if you go to Sacramento, if you go to Cleveland, they are Help Wanted signs everywhere. business are actually doing better at the base. And I think that's whats going on with the Stock Market more than anything else. 

Is it surprising to me ? Yes
Do I think share prices overvalued ? Yes. 
Are Price to Earnings multiples extended to the upside ? Yes.

What to buy ?
I am an old guy, I like simple things in infrastructure and economic growth. Get me steel, I want to own ball bearing manufacturers, cements, I want to own simple things.

Why ?
We are still building houses, we are still building roads, bridges. We are still going to make things. We still need steel, ball bearings, cements. We shall for the next 500 years.

Wednesday, April 19, 2017

Going against the trend will cost you your money

It's still a long term bull market. You should still err on the side of being bullish. Cash at one point should be a wonderful thing to have, but not yet. And there are times when I have gone to cash. Every time I had done it, I wish I had not.

We may all find stock prices overpriced and by Price to Earnings multiple they are infact. But nonetheless if you fight the trend it will cost you money. I find it difficult to buy stuff, but you have no choice.

via cnbc