Investing

A Taste of the Irrational Economic Summit

By Charles Sizemore  |  October 30, 2018

And another Irrational Economics Summit draws to a close.

We saw many familiar faces. Lacy Hunt, Chief Economist for Hoisington Investment Management, and David Stockman, former Director of the Office of Management and Budget under President Ronald Reagan, both returned and spoke to a packed crowd in Austin.

Though both gentlemen have very different areas of focus, they both reached similar conclusions: After years of market gains fueled by debt and an accommodative Federal Reserve, we’re looking at lean times ahead as that extraordinary liquidity gets slowly drained out of the system.

We also had some exciting first-time speakers. J.C. Parets, founder of technical analysis site All Star Charts and editor of Big Market Trends and Breakout Profits, gave a thorough analysis of the state of the market.

J.C. has forgotten more about charting and inter-market analysis than most of us will ever hope to learn, and I can’t really do his presentation justice with a short recap. But I cantell you this: J.C.’s analysis suggests this correction will likely get a lot worse before it gets better.

This brings me to my presentation, which I talked about herewith Dave Okenquist, and which you can see as part of our Irrational Economic Summit on-demand video kit.

 

My beat is income investing, which has been a tough row to hoe in this market.

But I lay out why income investing still makes sense, even with bond yields where they are today.

I also explain how the traditional financial planning model used by most advisors over the past 30 years is now dead on arrival, discuss what caused the recent spike in bond yields, give a robust defense of value investing and, finally, share a handful of my favorite income stocks in Peak Income.

Today’s market has a lot of similarities to the 2000 to 2002 market. With the dot-com bubble bursting, that was a tough time to be invested in growth stocks or index funds. But it was a fantastic time to be a value or income investor.

I go into detail as to why in my presentation. If you weren’t able to get to Austin in person or follow along live, click here for access to our on-demand video kit.

Charles

Charles Sizemore

Charles Lewis Sizemore, CFA specializes in finding value opportunities outside of the mainstream stock market. He is a frequent guest on CNBC, Bloomberg TV, Fox Business News and Straight Talk Money Radio, and has been quoted in Barron’s Magazine, The Wall Street Journal, and The Washington Post.MORE FROM AUTHOR