Money Show 2013 - Charles Githler

Charles Githler is owner of the Financial Forum and he said that it was coming back next year, replacing the World Money Show in Toronto. He started off the show with the Opening Remarks. He said that lots of speakers today at the show are deflationist. He said that governments are debasing currencies because of debt.

The reason that people are locking up money in bonds for 30 years at 2.3% is fear. If bond rates were falling this would be deflationary. However interest rates are currently rising so we have no deflationary problem.

He feels we are in a golden age of innovation. NASDAQ is up 22% this year. It is the best performing index in the US. The TSX is up by 6% so far this year. These figures include dividend income.

The last good time for the markets was from 1980 to 1987. Is the DOW still cheap? It is not overvalued. He feels that it still has some way to go and that it has room to rise 18%.

Solar and alternative energy is up dramatically. Biotech is performing very well. It is a golden age for R & D for Pharmacy. The US big banks have broken out. Most US banks normally track at 2 times book value and there are still a lot of banks at 1 times book value. They still have a way to go.

Even Dr. Doom is a neo bull. There will be a big rally over the next 2 years. We will have a turn in the market like what happened in 1980. This will be the results of market forces. There are still a lot of people sitting on cash after a 4 year bull market. This is because

• Materials and gold are up
• Interest rates will remain low
• There will be Reagan style golden era starting.

He gave a quote from Milton Freeman who once said that if the Federal Government was in charge of the Sahara Desert there would be a shortage of sand.

On my other blog I am today writing about IGM Financial Inc. (TSX-IGM, OTC-IGIFF)...continue...

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