On tonight's program, Anchor Paul Kangas interviews "Market Monitor" Robert Drach, publisher of the "Drach Weekly Research Report." Drach also managers NBR's model portfolio. Paul asks Bob for his take on the markets. Bob explains why the recent market volatility is nothing new and investors should prepare for more of it. In addition, Bob says he sees a crisis coming that will require Fed action. Finally, he offers up some stock picks for investors who can stomach some risk.
Do you agree with Bob Drach? Is a crisis coming? And, what do you think of the latest trades he's made in NBR's model portfolio?
To read a transcript, including stock picks, of Paul's interview with Robert Drach, click this link: Market Monitor for July 20, 2007.
Comments
Mr. Penland - All of Robert Drach's contact information is available in the "Model Portfolio" section of our website. That's where you can get daily updates about Drach's basic timing model portfolio.
To get there, put your mouse on the "Research & Resources" button in the NBR website menu bar. When the list drops down, click on "Model Portfolio." Robert Drach's mailing address, telephone, and email is listed at the top of the page.
In case you have difficulty navigating, here's the direct link to the model portfolio page: Drach
Please send via email the address or phone number for Mr Drach's weekly news letter. Thank you. Mark
Mr. Drach has a great reputation as a value investor. Frequently this approach makes sense, but value investors invariably settle for companies with poor growth, terrible management, and other flaws that have depressed their price.
By skipping the most profitable, best run, high growth companies like FCX, EOG, or VLO over the same period, value investors guarantee mediocre gains, even in the best of times. I mostly played the nickel slots when I lived near Lake Tahoe because I could afford to insert the $10 jackpot amount if necessary to get a 50/50 chance at winning. I also dropped a few quarters on a long shot with a jackpot that could change my life. Not that investing is like playing slot machines, but there is more to investing than buying only bargain stocks. Growth and good management have value. That's why formulas or even machines can't do our investing for us.
Times change. Foreign growth, US stagflation, and a declining dollar require a new, broader game plan.