Trumping Trump's Ego

Thu, 2017/01/26 - 2:24pm | Your editor
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In today's Financial Times, Joachim Fest, an economic advisor at Pimco (a stock we indirectly own) wrote:

In any large economy is in need of being made great again, it is Europe's. Following a decent economic performance between the creation of the single currency and the global financial crisis, Europe has been stumbling through a lost decade.

Economic growth in the EU has stagnated since 2008 and the unemployment rate remains twice as high as in the US. As a consequence of the euro crisis, the banking secotr is Balkanized and the financial market sare fragmented. The move towards 'ever deeper union' has stalled; separtism and a new nationalism are on the rise. Brexit appears to be a teste of things to come...

Ironically, Mr Trump's promise to put American first might help make Europe great again. While the new US administration aims to discourage imports and boost domestic production, European exportersshould still be able to increase their market share in the US for some time.

One reason is that the dollar has strengthened and the euro weakened since the election... Greater consumer and business confidence and higher stock prices could boost US demand for goods produced domestically or abrod.

The prospect of a more protectionist US administration—together with existing local pressures from populist movements—will probably provoke policy responses in Europe aimed at simulating doemstic demand and potential growth.

The chances are than in four or eight years' time more Europeans than Americans will have reasons to say 'Thank you, Mr President.' ”


Today your editor is trumping Trump's egotism. I got noticed by two investment publications, that same FT of London and the Jan. 27. issue of Investor's Digest of Canada. The FT printed on its editorial page a letter I wrote:

“Sir, Your book review of Nancy Weiss Malkiel's “Keep the Damned Women Out:”: The Struggle for Coeducation (January 23) descirbes her as an emiritus professor at Princeton. Surely she is better described as an emerita professo, since she is a woman who rose to that rank despite the antagonism towards women in US (and to a lesser extent British) universities until recently. To have overcome the prejudice she had to have more merit than a mere male doing a random walk in the Ivy League.

Vivian Lewis


New York NY, US..”

The Canadians quoted a note about a stock pick made by me a year earlier:

Wall Street's Best Daily newsletter (from the publishers of one of our featured advisories, Cabot Benjamin Graham Value Investor) recently celebrated that 'the 2016 markets were terrific. The Dow, the S&P 500, and the Nasdaq all made double-digit returns. But our contributors blew the doors off with their “2016 Top Picks!”

Among the top five winning contributors was none other than Global Investing's Vivian Lewis, whose recommendation of Canadian energy infrastructure firm Veresen Inc.(VSN-TSX, C$12.89) gained 83.6%.

Veresen's successful 2016 is all the more remarkable, says Ms. Lewis, as it occurred in the same year as the U.S. Federal Energy Regulatory Commission denied permits for VSN's gas liquefaction plant a Jordan Cove, Oregon—a planned facility for shipping gas to South American and Asian Pacific buyers.”


We own Pimco, a San Diego fund manager specializing in bonds, through its German parent, Allianz Versicherung. Today we publish an update on Veresen under the new US Administration. It trades in US$s as FCGYF. We also have news from Britain, Israel, Mexico, Canada, Chile, Argentina, Brazil, Ireland, and the Nordic countries, Sweden, Finland, Denmark, and Norway, plus a half-yearly report and three (3!) new buys.

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