Comments on: Bill Miller on Commodities and Market Physics http://www.investingintelligently.com/2006/09/14/bill-miller-on-commodities-and-market-physics/ Not just another (Canadian) financial blog Fri, 05 Dec 2008 10:59:52 +0000 http://wordpress.org/?v=abc By: Dave http://www.investingintelligently.com/2006/09/14/bill-miller-on-commodities-and-market-physics/#comment-2097 Dave Fri, 15 Sep 2006 17:07:41 +0000 http://www.investingintelligently.com/2006/09/12/bill-miller-on-commodities/#comment-2097 Great contrarian thinking. My advisor is also saying that the US dollar is going down. It's less likely to go down further than it was likely to go down 5 years ago, as you pointed out. Great contrarian thinking. My advisor is also saying that the US dollar is going down. It’s less likely to go down further than it was likely to go down 5 years ago, as you pointed out.

]]> By: Canadian Capitalist http://www.investingintelligently.com/2006/09/14/bill-miller-on-commodities-and-market-physics/#comment-2091 Canadian Capitalist Fri, 15 Sep 2006 15:22:48 +0000 http://www.investingintelligently.com/2006/09/12/bill-miller-on-commodities/#comment-2091 My personal opinion is that big blue chip US growth equities are going to outperform over the next five to ten years. Most of these stocks have displayed good revenue growth and most have doubled earning over the past 5 years. Whereas at one time investors were willing to pay a huge premium to the market for these stocks, now the pendulum has swung the other way. These stocks (like GE, HD, WMT, JNJ etc.) are now trading around the market multiple. Canadian investors can buy these stocks even cheaper now that our dollar is around 90 cents. Of course, everyone I talk to won't touch these stocks "because the US Dollar is going down". Funny how so few people were worried about the overvalued US dollar five years ago. My personal opinion is that big blue chip US growth equities are going to outperform over the next five to ten years. Most of these stocks have displayed good revenue growth and most have doubled earning over the past 5 years. Whereas at one time investors were willing to pay a huge premium to the market for these stocks, now the pendulum has swung the other way. These stocks (like GE, HD, WMT, JNJ etc.) are now trading around the market multiple.

Canadian investors can buy these stocks even cheaper now that our dollar is around 90 cents. Of course, everyone I talk to won’t touch these stocks “because the US Dollar is going down”. Funny how so few people were worried about the overvalued US dollar five years ago.

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