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You never know the market bottom until you are past it. Ross is pecking away buying things over the past couple of days.
Ross thinks that the world isn’t ending and if it is he won’t be worrying about what is in his portfolio. Ross looks at things over several years and when you look at things like that, there are plenty of attractive opportunities.
Ross particularly likes the emerging markets with a multi-year view. He likes China first, then India and Japan. He also thinks Ireland has been totally misclassified with the other PIGS.
Ross notes that Italy has the third most sovereign debt in the world. The ECB isn’t going to be able to prop up their bonds — Italy simply needs restructuring.
Ross notes that things always look the worst before they turn. Thinks the wild selling is due to margin calls and fearful selling. So forced selling and panic which means no attention to fundamentals.
Ross was asked if the markets would be higher at the end of the year. And bless him he was too smart to answer. He thinks anyone trying to pick the exact bottom or exact top of a market is a moron. He focuses on buying undervalued stocks not timing markets.
At some point he expects QE3 to happen. With the price of oil coming down and a slow economy he thinks the Fed will focus on stimulation rather than controlling inflation.
He is buying slowly in the US markets as well. He buys slow because he can’t time the turning point. Most recently he entered the marine transport of petroleum and petroleum products. He believes that industry has been depressed by too many ships being ordered a few years ago. The second area is shale gas through his investment in EXCO as he thinks shale gas will be a big part of America’s energy future.
Doesn’t see a property crash in China because there is a housing shortage, because loan to value ratios are only 60% they aren’t crazy, and because the culture of parents helping children financially.
What he is worried about is the cost of food in China.
Overall Ross thinks you have to be buoyant on China where the government has managed the countries affairs much better than we have in the west.
Here is the video.
About the author:
http://valueinvestorcanada.blogspot.com/
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One on fracking-_http://www.valuewalk.com/energy-policy-2/wilbur-ross-shale-fracking/