Bear markets aren’t the best time to expect immediate blockbuster gains. But they are the best possible time to build a high-quality portfolio of positions for outsized future returns. Doing just that is our primary goal for the New World 3.0 Portfolio here in its second month of operation. To date we’ve purchased nine stocks of companies tapped into what’s shaping up as the biggest investment opportunity of our lifetime: The need to construct the infrastructure needed to run a global 21st century economy. Read More
Analyst Articles
VRI Portfolio stocks are chosen for their staying power as businesses. We’ve consistently warned against the penny mining situations that trade solely on speculation. Rather, our focus is on businesses set to prosper from two very long-term trends: growing scarcity of easy-to-get-to resources and the giant call on those resources from nations rapidly constructing 21st century economies. Read More
The past week or so has breathed some life back into most Canadian income trusts. Global governments’ coordinated actions to free up lending have been the main catalyst for the rebound. Gains have been held back by worries about the world economy, which continue to soften up energy prices and in turn the energy-sensitive Canadian dollar. Read More
The Bank of Canada (BoC) lowered its target overnight rate by 25 basis points to 2.25 percent Tuesday morning, citing severe strains on financial markets, a coming global recession triggered by an ongoing US recession and a sharp decline in commodity prices as its primary concerns going forward. The BoC is the first central bank to follow up the Oct. 8 coordinated rate cuts by global monetary authorities with another cut. Read More
Recovery even from such deep value won’t occur until there’s visibility on how far the global economy will sink. In fact, there could well be more near-term downside. But these prices do represent another chance to buy these vital resources at prices that guarantee an explosive recovery, once a bottom for the economy is in sight. Read More
Canada elected another minority Conservative government yesterday, giving Stephen Harper another run in the top slot but denying him the mandate he’s angled for since his first win in January 2006. Read More
“‘Buy when everyone else is selling, and hold until everyone else is buying.’ This is more than just a catchy slogan. It is the very essence of successful investment.” That quote from legendary oil tycoon J. Paul Getty appears in his book How to Be Rich, as well as in the beginning of one of my favorite investment books, Contrary Investing by Richard E. Band. As long as I’ve been in the investment business, I’ve never seen a more simple and effective piece of advice. That particularly goes during tumultuous times like these. Read More
“‘Buy when everyone else is selling, and hold until everyone else is buying.’ This is more than just a catchy slogan. It is the very essence of successful investment.” That quote from legendary oil tycoon J. Paul Getty appears in his book How to Be Rich, as well as in the beginning of one of my favorite investment books, Contrary Investing by Richard E. Band. As long as I’ve been in the investment business, I’ve never seen a more simple and effective piece of advice. That particularly goes during tumultuous times like these. Read More
The global economic slowdown will only be responsible for a relative pause to the great commodities cycle. Prices will adjust, and the best companies will benefit. But the global emerging market industrialization and urbanization process continues at an unprecedented pace of epic proportions. Read More
First of all, let me be perfectly clear. I've never seen anything like the current wave of selling in my career. That includes the 1987 crash, the 1990 plunge in the wake of Iraq’s invasion of Kuwait, the utility deregulation scare of 1993-94, the Asian contagion of 1997-98 and the Great Bear Market/utility deregulation crackup of 2001-02. Read More