Here at Leeb’s Real World Investing we have discussed extensively the tendency for lay-investors to miss out on big returns if and when they get cold feet just before an investment really takes off. To this end, in our last issue we spoke about Benguet—a stock with gold exposure that took off astronomically following the announcement of the Iran-Iraq war, and related a tale about a colleague who missed out narrowly after abandoning his thesis on the stock. Read more about A Silver Lining 07-30-15
We noted with some interest this week Saudi Arabia’s plan to invest $10 billion from its Public Investment Fund (PIF), a sovereign wealth vehicle, into Russian infrastructure, agriculture, health care, retail, and real estate projects through the sovereign Russia Direct Investment Fund (RDIF). Of course, $10 billion over five years is a proverbial drop in Saudi Arabia’s ocean of sand, may amount only to a test, and may never come to full fruition.
Read more about Business as Usual at NYSE and Beyond? 07-09-15
Just when it looked like Athens would gain access to aid that would keep country afloat for a few more months, the Tsipras government overplayed its hand, rejecting creditors’ austerity demands. Since Greece failed to repay its loan to the International Monetary Fund, it’s technically in default.
Stocks here in the U.S., after an initial dip, shrugged off the Greece news. A “No” vote could still rattle markets for a time, but the focus increasingly will be on the continued strength of the U.S. economy where an improving profit outlook should be modestly beneficial for stocks.