October 23, 2009 - I run a rather interesting site. I believe I provide uncommon analysis, and due to that fact it is not necessarily appreciated by the masses. Point in case: I say X company is fundamentally weak and the share price subsequently goes up and/or they report "record" earnings. There are some that then regard my analysis as wrong or irrelevant, or worse yet not applicable because it uses the fundamentals. It is unfortunate that such a large cross section of investors now truly believe that fundamentals no longer apply - or worse yet believe short term price movement is the grand arbiter of value! Fundamental analysis is basically the measurement of value against risk. When one believes these principals no longer apply, then one no longer has confidence in the capitalist system and/or one has been hoodwinked by the most recent bubble/burst. This is where I believe we are now, and so shortly after just three bubbles were blown and popped in the last decade. - with one just popping last year! That's right three, literally one every three years or so - dot.com/telecomm, real estate/credit, and now the government induced equity bubble. We can arguably throw 2007 oil in there as well. Those that follow me know that this is what I do for a living - see "The Great Global Macro Experiment, Revisited".
Understanding my proprietary investment style
As you can see, there is a reason why they call this BoomBustBlog! Many people believe we have hit that trough in March of this year. I don't. Even if we did, we have literally approached bubblicious territory again which sets us up for another spin at the asset cycle..........FULL STORY
