David Burrows
President & Chief Investment Strategist at Barometer Capital Management
Member since: Jun '01 · 5186 Opinions
Rating Card
| All | 
Rating
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Big Win
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Win
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Neutral
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Loss
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Big Loss
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|---|---|---|---|---|---|---|---|
| 4.59 | 223 29.61% | 191 25.37% | 112 14.87% | 115 15.27% | 112 14.87% | ||
| 1 Month | 4.42 | 7 4.12% | 57 33.53% | 67 39.41% | 31 18.24% | 8 4.71% | |
| 6 Months | 4.58 | 31 18.90% | 58 35.37% | 25 15.24% | 35 21.34% | 15 9.15% | |
| 12 Months | 4.65 | 50 32.26% | 42 27.10% | 10 6.45% | 24 15.48% | 29 18.71% | |
| 2 Years | 4.73 | 66 44.00% | 27 18.00% | 6 4.00% | 18 12.00% | 33 22.00% | |
| 5 Years | 4.58 | 69 60.53% | 7 6.14% | 4 3.51% | 7 6.14% | 27 23.68% |
Stock Opinions by David Burrows
Stanley Druckenmiller says that "the market is the best analyst". There could not have been a more clear message leading up to the election. Certain sectors benefit more under Republicans, and financials have been leading very strongly over the last few weeks. Industrials, and small- and mid-cap stocks, would benefit from deregulation.
When the market comes into an event like this on solid footing, it's likely to come out the other side the same way. Whatever you think about Trump and his policies, markets are unemotional about this stuff. People have probably put hedges on and taken actions to reduce risk, and all that will have to be unwound over the next little bit.
Pendulum of regulation swings a long way in both directions. Coming out of the financial crisis, a tremendous amount of regulation was built in. No industry has suffered more because of heavy regulation. Market sees an opportunity for efficiencies and M&A.
Very positive on financials such as banks, insurance companies, investment banks, asset managers. Mainly because they went through a 15-year bear market and have only ignited the last couple of years.
At the beginning of September, there were 3 days that saw a giant thrust in breadth, where almost everything went up a bunch. When that happens, generally signals the beginning of a longer-term rally. He guesses that the market's going to look at deregulation, which has a larger burden on small- and mid-sized companies.
It also has to do with the fact that inflation may be a little stickier. So short rates have come down, but long-term rates have gone up, with the bond market saying you haven't done enough perhaps. Those companies tend to be more cyclical; 73% of the Russell 2000 are cyclical stocks.
Investors are looking forward to the next business cycle. Maybe, after the election last night, there are some who think the economic cycle might be a little stronger.
The #1 position in his firm. Really well managed, great job growing book value. Catastrophic events over last couple of years, so they've been able to raise policy prices. That trend is unlikely to change. Up a ton, but still trades at a discount to US peers. Not a lot of volatility. Continue to buy.
If you're in a bull market, you want to own the strongest stocks you can find. He prefers "good, getting better", some kind of positive change that could add to the valuation, and where other people agree with him.
In penalty box. Facing painful changes. Many shareholders are underwater, so you have to fight your way through all those who just want their money back. He owns RY, CM, and NA.
This is his biggest bank position. Leader in the sector. Best technology, balance sheet, and management (though you can't have somebody forever). Wonderful business. Bullish backdrop for financial services. Up 10% today, so could pull back. Buy a bit, buy more on a pullback. Won't get badly hurt with this one.
