Investing In The ‘New Normal’

Today I spoke with an old friend, Chris Mayer. Chris is the investment director at the Bonner family office. We covered a lot of things including:

  • The rise of passive investing and the inevitable consequences of what is almost certainly a bubble.
  • How investors are increasingly buying equities and treating them as bond proxies.
  • How it’s harder to say which sector is cheap and which isn’t — more than at any time in Chris’ 25 years of investing and why this is the case.
  • How we’re in a market which rewards companies for buying back stock and increasing dividends (even to the detriment of the overall financial position of the company) and what Chris focuses on as a consequence.
  • Why holding cash is exactly what companies should be doing in this market environment (despite being penalised for it).
  • How index weighting is perversely penalising stronger companies relative to their peers.
  • Two short ideas he took away from Jim Grant’s recently concluded conference.
  • Thoughts on investing in frontier markets.

(Click on the image to listen to the podcast)

Enjoy!

- Chris

“Balance sheet strength is more important than price paid. It does no good to get a bargain on a zero.” — Chris Mayer

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