Value Investing Congress 2009 – Macroeconomics are Important
Posted on | October 27, 2009 | No Comments
Those of you who read this blog regularly will not be surprised by this posting. You can sum it up this way is, Fundamentals are important but don’t ignore the big picture. Ignore Macroeconomic trends at your own investing peril. Important conversation not just for beginning investors but value investors in general.
You could think of this as a part two from yestedays post that laid out in outline what we missed for those of us that either didn’t know about or couldn’t attend the 2009 Value Investing Congress, the must attend value investing conference. One of the most interesting items I have read about this years Congress was the speech given by David Einhorn, a person I was not previously familiar with but is at Greenlight Capital. You should download the speech NOW. He spoke about a previous failure that made him realize that as a good value investor you can not be agnostic to macroeconomic factors. Einhorn slams the cozy relationship between the financial institutions and the present United States government. He continues on by trashing Credit Default Swaps, one of the true banes to international financial security. And then on to proclaim the current government policy of stimulus is both unsustainable will have consequences whenever it is withdrawn.
The ironic thing about his speech is that I loved everything he said until he gets to his conclusion which is, in a nutshell, to buy gold bullion. I am not arguing that owning some gold to help hedge a potential inflationary threat is bad. I own some gold bullion in my portfolio. But I don’t know that I would be adding a whole bunch at these prices.
Related Posts:
Tags: Value Investing
Comments
Leave a Reply
Subscribe to Chroma Investing
