Every once in a while Bloomberg or CNBC bring on a portfolio manager worth taking the television off of mute to listen to. Today Bloomberg supplies us with Steve Romick:
- He is concerned about long-term implications of global money printing, the likely result being inflation.
- He put a billion dollars to work last fall, isn’t excited about valuations right now.
- He would however rather own stocks than sit on a lot of cash with inflation likely coming.
- Thinks of Walmart (WMT, Financial) as an infinite duration bond with a rising coupon which today is far more attractive than a Treasury bond. Thinks his rate of return on long-term compounded basis will be high single digits, low double digits.
- Has been buying some pools of subprime loans at deeply discounted prices, if inflation arrives home prices should do reasonably well.
- He is concerned about long-term implications of global money printing, the likely result being inflation.
- He put a billion dollars to work last fall, isn’t excited about valuations right now.
- He would however rather own stocks than sit on a lot of cash with inflation likely coming.
- Thinks of Walmart (WMT, Financial) as an infinite duration bond with a rising coupon which today is far more attractive than a Treasury bond. Thinks his rate of return on long-term compounded basis will be high single digits, low double digits.
- Has been buying some pools of subprime loans at deeply discounted prices, if inflation arrives home prices should do reasonably well.
