Peter Schiff talks about Mish

[ronpaulfollower999]

 

[Madison320]

Peter Schiff's investment strategy has been very straight forward and consistent since around 2000. Basically precious metals and foreign stocks with high dividends in fiscally sound countries. It's easy to check the record on his strategy. Compare that to a typical portfolio and you'll see that his strategy FAR outperfomed the typical one since 2000. The only time the typical strategy did better was in 2009 but Schiff did much better in all the other time frames. It's wrong to cherry pick one small time frame when he lost money and ignore the vast majority of the time when he made money. Plus the most important fact is that the NET gain for Schiff's strategy is much higher than the others since 2000.

 

[sluggo]

Schiff is a big proponent of investing in those foreign dividend stocks in their respective currencies. ex; AUD, CAD, etc.

I've yet to find a way to do this with a small investment account. Seems like you have to be a high roller to do this.

Anyone have any experience with currency ETF's like FXA or FXC?

 

[jbauer]

Correct me if I'm wrong but here is a list of his funds: http://www.europacificfunds.com/

Most don't show much of a history (atleast according to morningstar...which has it flaws) the ones that do have underpreformed their peers. The cost is much higher then their peers. If you have longer history I'm all ears. But ussually when you have a flawed fund they "re-create" the fund with a different ticker to get rid of its lack of preformance rather then its above average preformance as you're suggesting.

All things being equal. Their investment philosphy is flawed. You can't invest using our current currency (dollars) into foreign stock or precious metals held in dollars and escape any of the doom and gloom he's predicting. Massive inflation which seems to be his biggest concern (as is mine) will effect all aspects of life. Foreign companies and dollar denominated PM's will have no better or worse ability to increase in value over any other type of asset (assuming that asset would rise with inflation as most assets do)

 

[jbauer]

Schiff is a big proponent of investing in those foreign dividend stocks in their respective currencies. ex; AUD, CAD, etc.

I've yet to find a way to do this with a small investment account. Seems like you have to be a high roller to do this.

Anyone have any experience with currency ETF's like FXA or FXC?

Open a retail brokerage account. Unless the brokerage house has a low end limit you should be able to buy as little as one share of an ETF provided you're willing to pay the ticket charges. Now spreading the cost of the purchase and sale over one share might mitigate any ability to make anything but thats on you.

 

[sluggo]

I'm talking about the ability to convert USD to CAD and invest in the Canadian stock market, for example.

Seems like most brokerages that will even do this require minimums of 100K and up.

 

[jclay2]

I'm talking about the ability to convert USD to CAD and invest in the Canadian stock market, for example.

Seems like most brokerages that will even do this require minimums of 100K and up.

Wrong. Check out any discount brokerage. Even fidelity or something like that would work, given the huge number of ETFs available to the average joe investor.

 

[jbauer]

I'm talking about the ability to convert USD to CAD and invest in the Canadian stock market, for example.

Seems like most brokerages that will even do this require minimums of 100K and up.

It is my understanding that you cannot hold foregin currency in a domestic account denominated in a foregin currency. (even if a statment says you own that currency) If you can it certainly isn't readily availible. All etf are going to trade back to local currency at some point and since you live here that currency is dollars. Now if you want to move to another country that is one way to accomplish this. The whole trade back to local currency makes it possible for "the man" to be able to tax you accordingly.

 

[jbauer]

Wrong. Check out any discount brokerage. Even fidelity or something like that would work, given the huge number of ETFs available to the average joe investor.

Jclay is right you're very much able to trade canadian currency (denominated in dollars) in any plain jane brokerage account. Have fun.

 

[LibertyIn08]

http://www.sitkapacific.com/files/Sitka_Pacific_Capital_Management_Absolute_Return_Portfolio.pdf

Mish has outperformed both the S&P Benchmark and the Hedge Fund industry tracker over the last 5 years.

Schiff's funds, on the other hand, have trailed both benchmarks. Unsurprising that he, unlike Mish, doesn't make his results easy to find.

Not to mention the exorbitant fees he charges those that trade through his firm.

 

[hazek]

What Peter says as to why he refused to be on the same show as Mish sounds perfectly reasonable to me. I would have done the same thing.

 

[Madison320]

Correct me if I'm wrong but here is a list of his funds: http://www.europacificfunds.com/

Most don't show much of a history (atleast according to morningstar...which has it flaws) the ones that do have underpreformed their peers. The cost is much higher then their peers. If you have longer history I'm all ears. But ussually when you have a flawed fund they "re-create" the fund with a different ticker to get rid of its lack of preformance rather then its above average preformance as you're suggesting.

All things being equal. Their investment philosphy is flawed. You can't invest using our current currency (dollars) into foreign stock or precious metals held in dollars and escape any of the doom and gloom he's predicting. Massive inflation which seems to be his biggest concern (as is mine) will effect all aspects of life. Foreign companies and dollar denominated PM's will have no better or worse ability to increase in value over any other type of asset (assuming that asset would rise with inflation as most assets do)

Schiff is a long term investor. Correct me if I'm wrong but I think he just started his funds a couple of years ago. That's not long enough to make an evaluation.

As far as avoiding inflation why wouldn't foreign stock be a hedge? If I buy 100 shares of Toyota, does it matter what currency I used to buy those shares? The fact is I now own 100 shares of Toyota and not dollars. So if the dollar loses value my shares will go up in dollar terms.

Shedlock thinks we are going to have deflation, Schiff thinks inflation. Would you rather own gold (Schiff) or treasuries (Shedlock)?

 

[Madison320]

Schiff is a big proponent of investing in those foreign dividend stocks in their respective currencies. ex; AUD, CAD, etc.

I've yet to find a way to do this with a small investment account. Seems like you have to be a high roller to do this.

Anyone have any experience with currency ETF's like FXA or FXC?

If you have a 401K check to see if you have an option to go outside of the normal, crappy mutual fund choices they give you. I called my investment company (Fidelity) and they sent me some paperwork to set up this thing called a brokerage link. Now I can buy anything that you can buy with a normal investment account. I own a lot of foreign mining companies, a gold ETF (GLD), and an oil ETF (USL). My guess it most investment companies don't advertise this feature. Maybe they don't want the liability. If someone loses their 401K day trading they might try to sue.

 

[Madison320]

http://www.sitkapacific.com/files/Sitka_Pacific_Capital_Management_Absolute_Return_Portfolio.pdf

Mish has outperformed both the S&P Benchmark and the Hedge Fund industry tracker over the last 5 years.

Schiff's funds, on the other hand, have trailed both benchmarks. Unsurprising that he, unlike Mish, doesn't make his results easy to find.

Not to mention the exorbitant fees he charges those that trade through his firm.

Do you think we are going to have inflation or deflation in terms of dollars?

 

[jbauer]

Schiff is a long term investor. Correct me if I'm wrong but I think he just started his funds a couple of years ago. That's not long enough to make an evaluation.

As far as avoiding inflation why wouldn't foreign stock be a hedge? If I buy 100 shares of Toyota, does it matter what currency I used to buy those shares? The fact is I now own 100 shares of Toyota and not dollars. So if the dollar loses value my shares will go up in dollar terms.

Shedlock thinks we are going to have deflation, Schiff thinks inflation. Would you rather own gold (Schiff) or treasuries (Shedlock)?

Your 100 shares of Toyota should go up within spitting difference of a 100 share of GM or Ford given a certain set of circumstances. I'm not sayin Schiff is not hedging for inflation. I'm saying owning stock regardless of region should do the exact same thing esspecially given the correlation factors between regions of late.

 

[Madison320]

Your 100 shares of Toyota should go up within spitting difference of a 100 share of GM or Ford given a certain set of circumstances. I'm not sayin Schiff is not hedging for inflation. I'm saying owning stock regardless of region should do the exact same thing esspecially given the correlation factors between regions of late.

I totally agree, assuming that Toyota and Ford are equally profitable in the future. But given our debt and coming inflation there's a good chance that US companies will not be as profitable as foreign companies in the future. (Maybe Toyota was not such a good example given Japan's debt!)

But foreign companies are not Schiff's only strategy. He also thinks you should buy precious metals like gold and avoid cash like US treasuries. Most investors think treasuries are the safest investment you can make. Schiff thinks it's one of the riskiest. What do you think?

 

[LibertyIn08]

Do you think we are going to have inflation or deflation in terms of dollars?

Isn't that irrelevant to whether Schiff's criticism of Mish's firm is accurate?

 

[heavenlyboy34]

OMFG! I had respect for Mish till now. WTF was he thinking doing that to Peter?

 

[LibertyIn08]

OMFG! I had respect for Mish till now. WTF was he thinking doing that to Peter?

Peter - the paragon of principle. The man who uses his books to attracts clients who overpay by exceptional margins for basic brokerage operations and underperfoming funds with egregious management fees.

Yes, lets just take his word on the matter.

At least Mish has the guts to admit when he's wrong.

 

[itshappening]

I would like to hear the audio of Schiff talking about Krugman's attack on him last week

Does anyone have it ?