Logan Kane, author of High Finance and popular Seeking Alpha contributor, stops by to discuss his thoughts on the current market. Logan is one of the brightest analysts I have ever followed.
Logan and I first met a couple of years ago, having lunch at a nice local restaurant and talking stock analysis, gold, and the economy. Logan does fantastic research into the markets, that while providing a data analytics view that is contrarian to most market investors, is nonetheless very valuable to investors seeking outstanding returns against the market average.
Logan and I cover the following main points during the interview:
- Printing from Fed and how dollar must devalue going forward, down 25-30% to get the debt under control;
- His research showing that stocks go up and night, and down during the day pretty regularly;
- Why Paypal is his top pick for 2020;
- More efficient ways to pay each other are emerging (including crypto) and will replace old methods such as paper checks;
- Separating long term account from short term trading accounts, can trade both;
- Logan is not a technical chartist, uses to confirm known stock anomalies such as momentum from 1 day to 1 year with an eye on fundamentals;
- Explains why mean reversion occurs after liquidity shock when a large investors dumps a stock not due to fundamentals;
- Coronavirus is accelerating pre-existing trends, including shifts into high technology-driven growth;
- GDP will grow but standard of living will do down to debt, where US leaders are actively running existing institutions into the ground;
- Corporation trends of buying back stock, taking debt, and cutting payroll to inflate numbers in the short term, provide less long term value creation.
