Consensus seem to say CNBC is noise and pure crap. I choose to say it is what you can pick up from.
Kudos for Dash of insight for aggregating these three interviews. It’s a great summary of folks looking at what matters to them more than all these noise about yields moving higher that this is the end of the world.
All three sources demonstrated a very sophisticated understanding of the relationship between stocks and interest rates. They all note that stock market multiples are actually strongest when interest rates are in the range of four percent.
- Baron emphasizes the importance of stocks in fighting inflation.
- Robbins notes the multiple, stating "When interest rates are between 3 and 7 percent, the long-term history of the market is to trade between 17 and 18 times earnings. With our portfolio trading at 10 1/2, we’ll take our chances."
- Calamos notes, "…if you go back even 50,60 years, when the 10-year bond was 4% to 6%, p/es were 20,which means it’s a much more growth environment.so i think we have to, you know,re-educate investors that, you know, going back to normal rates is not a bad thing."
Larry Robbins – My favorite amongst them. Talks so much about why he does it and effective capital allocations
Rob Barron
John Calamos
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.
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His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
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Tactical Trading Academy
Monday 8th of July 2013
Larry's top holding is Tenet Healthcare Corp.