Quotable quotes

Here are a few investment quotes from people I respect. Below are excerpts covering investor FOMO & the markets, the outlook for commodities, the outlook for energy and carbon fuels, and inflation policies.

Larry McDonald on why demand for commodities and carbon energy are here to stay

My comments: Recent reports have noted the growth and usage of carbon fuels is only going to be HIGHER going forward (eg- new AEI report shows energy supply will be 77% sourced from carbon fuels in 2040 – see my video here). Even with progressions of so-called clean energy technology, the reality of energy consumption in most applications will not be possible without proportionally higher usage of carbon fuels. Despite this reality, many of these incentives, and the short sightedness of reductions in carbon energy production, are driven by left wing extremist politicians in Canada, US and some European nations. This, to win votes of ill-informed idealists. Votes before reality. Here’s Larry on the outlook for carbon fuels – my emphasis on the final sentence (read it twice!):

“The per capita consumption of commodities – and carbon – is exploding globally. There are one billion human beings in India that do NOT have air conditioning. Another one billion in China do NOT own an automobile.  We are suppressing the supply (hello ESG, hello capex implosion) of many key commodities all around the planet, while at the same time roiding up future demand.”

Larry again – on inflation

A government spending and inflation situation familiar to Canadians. Again, here are some Larry-isms:

“What many people fail to understand, are the colossal social and political drivers of inflation.  Once inflation gets above 6%, the follow-on effects linger on for years.  Especially with government spending ripping higher which after all was a reaction to higher inflation in the first place!”

 

David Rosenberg on impatience

As Portfolio Manger who has also refused to play the “greater fool theory” tech driven rally this year, I can empathize with Mr. Rosenberg in his frustration.  Although I am not so bearish as he:

“Then there are the folks out there who view the stock market, and this is the majority, sad to say, as if it’s a casino. The number of emails I have received these past few months that would read “how could we miss this rally??!!” is absolutely incredible, but the good thing about me is that I have been around the track so many times and have seen these bear market rallies come and go… and yet, the remorse among those who “missed” the huge, though narrow, spurt we experienced this year in the stock market has to be addressed. So many people are beating themselves up for nothing (I am sleeping rather well at night, and I have the lowest concentration of my portfolio in the S&P 500 since 2007!). God forbid you miss a bear market rally these days. What is wrong with these people? Are they or their clients really that short-sighted? Is it lost on these folks as to what happened in 2022? Is it lost on these people that even with a modest broadening out of late, that the vast majority of S&P 500 sectors are still well off their peaks?”

My BNN show yesterday

I opened my MarketCall appearance addressing recent developments in sentiment and breadth. Hope you enjoy the clip:

Full episode: Market Call for Monday, June 26, 2023 – Full episode: Market Call for Monday, June 26, 2023 (bnnbloomberg.ca)

 

2 Comments

  • Viewers were worried the red marker was out of service, at BNN until half into the show, it began appearing on the charts.

    Also worthwhile to see you pointed out that the Chat GPT stocks rally is there to bamboozle investors.

    Reply
    • Yes, I am naked without my charts–and the drawing tool is handy! They got it fixed, but yes, I had to talk viewers through the charts. BNN was very appreciative of my efforts to keep the show going!

      Reply

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