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Marko Kolanovic: ‘Imminent Concerns Are Overblown’, Stay Overweight Stocks
Well, good news (again). Marko Kolanovic is still bullish - or if not "bullish" at least "constructi
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Well, I do think he’s right in the short term… and I hope so, too, because I still have two longs that didn’t quite hit my target before February’s hiccup. That being said, I can’t get over the insanity. Reconciling my own thoughts on valuations with the market’s action is a bitch. My head is saying “this is insane” while it… just… keeps… going. There’s the “get out now while you still can” vs. the “don’t argue with the market, just make money.” But really, who is still buying right now?
Chronic, worsening dollar weakness perpetuates the illusion of stock gains. In fact, US stocks are losers net of dollar devaluation (20% last year), inflation (reportedly ~2% though in reality higher), and taxes.
But US stocks have substantially outperformed US cash and should continue to do so. However, for a second year US stocks continue to under-perform foreign stocks on a currency adjusted basis.They’re the ticket, especially in selected-country EM stocks where there’s actually real growth and better value.
This trend remains in motion with legs still.
“We are being systematically boiled and our wealth is being stolen.”
– Mark Yusko at the SIC investment conference 03/08/2018 in San Diego, California