Before I get started with today’s note, I want to let you know that the next week or so will be a little bit different — I’ll be attending the Value Investing Congress in New York next week to learn from some masters and get some new ideas for my fabulous readers, and we’ve got a holiday. I won’t be publishing the free daily letter every day while I’m away, but I’ll try to provide at least one special update for the Irregulars, and (assuming that I hear something I like) I’ll share my favorite idea from the conference as the “Idea of the Month” for October … though I’ll be traveling, so it might be that the monthly article comes out a few days later than usual (ie, on Monday Oct 18 instead instead of Friday the 15th).
So that’s what will be happening next week — there probably won’t many articles appearing on the free site, depending on how much time I have in my hotel room, and there will be at least one special update for the Irregulars during the week.
And now, for the meat of today’s sandwich:
The folks at the Oxford Club publish a number of newsletters, with most of the “premium” ones being a bit more aggressive or specialized than the “basic” Communique. One of those is the Insider Alert from Alex Green (not to be confused with the dozen other newsletters and trading services that use the “Insider Alert” name), and the Club has lately been pitching a special report that includes one of those Insider Alert picks … for a price, of course.
And the clues caught my attention … and to tell the truth, sounded a little bit familiar … so I thought I’d dig into that ad for you today.
The first part of their spiel is that we’re seeing the “buy signal of the decade,” which is basically that stocks are inexpensive based on earnings (not sure I agree on that, since I’d bet forward estimates will come down), interest rates are low and will remain low (hard to argue with that one), the prevailing view is negative, and the sharp drop in the PE ratio of the S&P 500 in the first half of this year is something that usually precedes a run up in stocks. Throw in something about continuing growth in energy demand, though ...