This excellent post from Eric Cinnamond at Palm Valley Capital sums up the challenges facing value investors in our post-QE world:
Last week my son and I went for a bike ride. Before departing, I noticed the chain on my bike was a little rusty, so I sprayed it with WD-40. My instinctive response can be traced back to my childhood and growing up in a WD-40 family. We put it on everything. In addition to our bikes, we sprayed it on window tracks, saws, locks, nuts and bolts, lawnmowers, and anything else that squeaked, rusted, or was stuck. If it was edible, we’d probably have put it on our pancakes!
When I became a small cap analyst in 1996, I was thrilled to learn WD-40 (symbol: WDFC) was a publicly traded company. In fact, it was one of the first stocks I followed and recommended. WD-40 is a classic high-quality small cap that possesses many of the attributes we seek…..
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.