Got some heartening news for our BizNews Share portfolio last night when my colleague Jackie Cameron interviewed a measured Dr Richard Smith, chairman and CEO of the Foundation of Cycles. It was a follow-up to the Ray Dalio “bubble indicator” story which featured in yesterday’s RP newsletter.
Also read: Alec Hogg: Dalio’s ‘bubble indicator’ says US not there
For context, Dr Smith’s foundation, a non-profit, is 80 years old. It was created by the 31st US president Herbert Hoover (above) to uncover what caused the 1929 stock market crash and the subsequent Great Depression. Its founder, Hoover’s chief economist Edward Dewey, was a pioneer in behavioural economics, a field that’s become increasingly popular with time.
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Jackie’s interview with Dr Smith is a gem, supporting the race reviews we’ve already received for our three day old BizNews Power Hour. Well worth the listen. But for purposes of this discussion, my ears pricked when she asked about the definition of “emerging tech” stocks which Dalio warned are in the danger zone.
The way Dr Smith explains it, Amazon, Apple, Adobe, Microsoft and Naspers (yes, I asked) do NOT fall within this “emerging tech” definition. Boom stocks like Tesla and those favoured by, say, Cathie Wood’s ARK Funds, DO. So if you’ve replicated the BizNews share portfolio, breathe again. For the moment anyway.
- PS – If you thought you’d lost out on the inaugural BizNews Investment conference, good news. With the lockdown move to Level One, we’ve got some new spaces available (but they’re running out so please act soon). More details here: https://www.biznews.com/biznews-investment-conference
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