Darren Winters

Value Investing

Posted By Darren Winters on Jul 21, 2020

Has value investing died in this new normal as the fundamentals meltdown and risk asset prices melt-up where all that counts is the central bank’s willingness to keep stocks propped up with massive amounts of liquidity. Not even a deep earnings recession, a coronavirus-induced collapse in profits where earnings have been tipped to fall by 60% in the quarter has dampened the recent bull run in stocks. So the financially...

Deep Earnings Recession

Posted By Darren Winters on Jul 13, 2020

A deep earnings recession made worse by a coronavirus-induced collapse in profits could be the final straw that dashes all hopes of a swift V-shaped recovery. Before the coronavirus hit the mainstream corporates were already in an earnings recession. In a piece entitled, “Earnings Recession” dated November 2019, I wrote, “the overall three straight quarters of year-over-year earnings declines suggest that companies are deep into an...

MP3 State Capitalism

Posted By Darren Winters on Jul 9, 2020

The transition to a new monetary policy regime, known as MP3 state capitalism is in play according to Bridgewater’s CIO Prince. MP3 state capitalism puts the government at the epicenter of capital distribution and it is likely to have a profound impact on investment portfolios going forward. So how did we get to MP3 state capitalism, which is likely to be radically different from previous cycles?  The idea of state capitalism...

Central Banks in Cahoots

Posted By Darren Winters on Jun 27, 2020

With the central banks in cahoots with pursuing a policy of staggering global stimulus, a risk-recovery rally could now be in play. The market has got its fix with over $18 trillion in global stimulus snorted up the nostrils of global markets, the central banks in cahoots with their asset purchases (QE) to infinity, has ensured a melt-up in risk assets, while the fundamental meltdown In the age of Zombies and bankrupt companies with...

Gold Rally

Posted By Darren Winters on Jun 16, 2020

The great gold rally continues, it is a victory lap for gold bugs and those advocating a system of sound money, which supports a store of wealth and sustainable development. Since time immemorial an ounce of gold has always been able to buy a fine suit.  Precious metals, particularly gold and platinum is often portrayed as a barbaric relic of the past, but the recent gold rally underscores gold as a prime haven asset that protects...