Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
On Fed actions - "feel it's really a snowball, gaining forces. ...that's the problem, is that the more money you throw at this problem...And yet the Fed’s goal is just to lift asset prices, with this idea that we’re going to have it all trickle down....I think it just erodes the confidence in fiat currencies. And I don’t honestly know how it ends. I really truly don’t. There's going to be unintended consequences. But I think a lot of people such as myself are very comfortable that we’re, sadly, on the wrong path..."
Positioning for Inflation v deflation
International - "We’re looking to have more of our capital invested overseas, and to be able to invest in other asset classes. So let’s take the overseas investment first. In our portfolio, we have about 21% of the portfolio is domiciled overseas. But more important than that, as I don’t really think that's as relevant as how much the revenues are being foreign sourced. And that's about half the revenues of our long equity book. "
Bonds - "high-yielding corporate bonds are so unattractive, and there really isn’t much distressed debt that exists out there at all....the amount of new corporate issuance that is triple C and not rated is at an all-time high."
He ends with Farmland - ? Where does that show up in his portfolio? He implys it is a substitute for gold. Is there a farmland REIT?
You note: "He ends with Farmland - ? Where does that show up in his portfolio? He implys it is a substitute for gold. Is there a farmland REIT?"
I recall discussions about farmland a year so ago; but I don't recall any pure plays being discovered. I suspect much of the best monies has been made in U.S. farmland. This is my view from MI, which has a lot of agri land; which has also been in demand for the past 4 years. I know a few folks who held farm land in North Dakota and sold the land at auction one month ago for $1,325/arce @ 600 arces = $795,000. This was standard quality land and without irrigation.
Reply to @catch22: greetings catch: I just came across your post & the value of land in N.D.. was wondering if fracking in that area has driven up the cost / acre? ( mineral rights + drilling) Derf
Reply to @Rbrt: Since Romick is always throwing around the term "fiat currency," I suppose this P.S. from Barry Ritholtz (in a post today about stocking up on necessities ahead of Sandy) is directed at him, among others:
"PS: All you fiat money folks — the little green pieces of paper in my wallet bought me food, gas, water, supplies and medicine. Since you think they have no value, please contact me and I'll give them a good home."
The full understanding is that the farm land mentioned is currently priced only for that purpose. I have placed a map at this link North Dakota counties where you will find McLean county.....about in the central area of the state. The farm land is in this county to the southeasterly sections. The Bakken Oil Formation's outer southeast range is near McLean county; but has not yet caused any pricing changes for shale oil reasons. The below link for the Bakken Reserves area will provide a decent view. The majority of the activity and crazy pricing has taken place in Williams county in the northwest area of the state. If one owned a large piece of land there about ten years ago and sold 2 years ago...............well, a fella could just move right into retirement managing a decent investment portfolio. Bakken Oil Reserve map
Comments
On Fed actions - "feel it's really a snowball, gaining forces. ...that's the problem, is that the more money you throw at this problem...And yet the Fed’s goal is just to lift asset prices, with this idea that we’re going to have it all trickle down....I think it just erodes the confidence in fiat currencies. And I don’t honestly know how it ends. I really truly don’t. There's going to be unintended consequences. But I think a lot of people such as myself are very comfortable that we’re, sadly, on the wrong path..."
Positioning for Inflation v deflation
International - "We’re looking to have more of our capital invested overseas, and to be able to invest in other asset classes. So let’s take the overseas investment first. In our portfolio, we have about 21% of the portfolio is domiciled overseas. But more important than that, as I don’t really think that's as relevant as how much the revenues are being foreign sourced. And that's about half the revenues of our long equity book. "
Bonds - "high-yielding corporate bonds are so unattractive, and there really isn’t much distressed debt that exists out there at all....the amount of new corporate issuance that is triple C and not rated is at an all-time high."
He ends with Farmland - ? Where does that show up in his portfolio? He implys it is a substitute for gold. Is there a farmland REIT?
You note: "He ends with Farmland - ? Where does that show up in his portfolio? He implys it is a substitute for gold. Is there a farmland REIT?"
I recall discussions about farmland a year so ago; but I don't recall any pure plays being discovered.
I suspect much of the best monies has been made in U.S. farmland. This is my view from MI, which has a lot of agri land; which has also been in demand for the past 4 years.
I know a few folks who held farm land in North Dakota and sold the land at auction one month ago for $1,325/arce @ 600 arces = $795,000. This was standard quality land and without irrigation.
USDA 2012 Farmland Values Report
Take care,
Catch
http://www.fa-mag.com/component/content/article/1-features/12079-bargain-scavenger.html?tmpl=component&print=1&page=
Derf
"PS: All you fiat money folks — the little green pieces of paper in my wallet bought me food, gas, water, supplies and medicine. Since you think they have no value, please contact me and I'll give them a good home."
The full understanding is that the farm land mentioned is currently priced only for that purpose.
I have placed a map at this link North Dakota counties where you will find McLean county.....about in the central area of the state. The farm land is in this county to the southeasterly sections.
The Bakken Oil Formation's outer southeast range is near McLean county; but has not yet caused any pricing changes for shale oil reasons. The below link for the Bakken Reserves area will provide a decent view. The majority of the activity and crazy pricing has taken place in Williams county in the northwest area of the state. If one owned a large piece of land there about ten years ago and sold 2 years ago...............well, a fella could just move right into retirement managing a decent investment portfolio.
Bakken Oil Reserve map
Take care,
Catch