Today on the podcast, Michael Covel interviews Frank Curzio and Robin Griffiths. First, Covel speaks with Frank Curzio of Stansberry & Associates. Covel and Curzio discuss how the fundamental guys justify all time highs in the equity market; the Shiller PE ratio; the importance of analyzing interest rates; Warren Buffett recent investments; what the Fed would do if we went down 30% today; why having a low interest rate environment creates a good situation for stocks; being prepared from a risk management perspective; Zero Interest Rate Policy, its effect on equities and bonds, and tail risk; comparing the environment today to the 1987 crash; hypothetical situations surrounding the S&P 500; exit strategies; and the 24-hour news cycle. Next, Covel interviews Robin Griffiths, Chief Technical Strategist at ECU and formerly at HSBC. Griffiths comes at it from a technical perspective. Covel and Griffiths discuss how to use fundamentals in an age when interest rates are artificially controlled; Griffiths’ history as a mechanical engineer and how he found his way into trading and technical analysis; regression analysis; Elliott Wave and cycles; the idea of whipsaws; geopolitical risks; China, India, and the rise of Asia; not trading off of geopolitical fundamental information; how Griffiths came to the conclusion that the efficient market hypothesis and much of what the mutual fund industry depends on doesn’t hold water; spikes and why people in 2014 think that all spikes are gone; Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay and the cyclical nature of booms and busts; and virtual currencies.
Michael Covel talks with Frank Curzio of Stansberry and Associates. Curzio is the voice behind S&A Investor Radio, as well as the editor of the Small Stock Specialist. Although they have different stances on trading, Covel and Curzio connect on a number of trends. Curzio and Covel discuss the CES (Consumer Electronics Show) and upcoming electronics trends; connectivity; narratives; protecting your downside; the Federal Reserve and the gold market; Netflix, Best Buy, and 4K televisions as a trend; Apple; being on the ground, physically going somewhere, and the importance of being there. Covel saw Curzio present in the fall of 2013 in Singapore and really appreciated his technique of stop lossing his narrative.