Tag: episode 1106

TRENNERT: THERE IS NO ALTERNATIVE TRANSCRIPT

August 1, 2014

Jason Trennert is Managing Partner and Chief Investment Strategist of Strategas Research Partners, an independent investment strategy and macroeconomic research firm. Trennert is widely followed by institutional investors in the money management and hedge fund world, and is identified as one of “Wall Street’s Best Minds” by Barron’s.

CONSUELO MACK: This week on WealthTrack, a financial thought leader who is full of creative investment ideas. Jason Trennert and his independent research firm Strategas are known for identifying pithy investment themes like “There Is No Alternative”, or TINA and the New Sovereigns. Find out what they are next on Consuelo Mack WealthTrack.

Hello and welcome to this edition of WealthTrack, I’m Consuelo Mack. How worried are you about the stock market? Is the near tripling of stock prices since the 2009 market bottom a cause for concern? A recent Bloomberg poll of financial professionals found that 47% of them feel the market is close to unsustainable levels, while 14% saw a bubble. And most were expecting stock volatility to increase within six months. All of these expectations might indeed turn out to be prescient. As financier J.P. Morgan once commented about the stock market: “it will fluctuate.” But there are other aspects of the market which provide a different and more positive perspective that are provided by this week’s WealthTrack guest, a financial thought leader whose work is widely followed by institutional investors in the money management and hedge fund world.

He is Jason Trennert, Managing Partner and Chief Investment Strategist of Strategas Research Partners, an independent investment strategy and macroeconomic research firm he co-founded in 2006. Barron’s has identified Trennert as one of “Wall Street’s best minds”.

Prior to Strategas Trennert was the chief investment strategist at ISI group the firm run by WealthTrack guest Ed Hyman. Trennert’s team was voted one of the best investment strategists by institutional investor for three years. Trennert and his Strategas team are known for their in-depth economic and market analysis and identification of investment themes.

One fascinating trend they have uncovered is how much the supply of publically traded stocks is shrinking. As you can see from this graph, the number of companies on American exchanges has shrunk from a high of nearly 9,000 in the late nineteen nineties to 5,000 today, a decline of 43%. On the flipside, as you can see from this chart, private equity assets under management have soared over the last decade, as more companies are choosing to go private. Trennert notes that simple supply and demand dynamics could contribute to the continuation of the stock market rally.

One of trennert’s most widely quoted stock market themes is one he wrote about in The Wall Street Journal. It’s called TINA, which stands for “There Is No Alternative.” I asked him to explain his theory that “there is no alternative to stocks.”

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