John Hempton on What's Ailing Bank Stocks

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 19 August 2019

⏱️ 51 minutes

🔗️ Recording | iTunes | RSS

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Summary

We live in a world of generally expensive stock markets and bank equities trading at 30-year lows. So says John Hempton, co-founder of hedge fund Bronte Capital and a former bank analyst, who also calls it "one of the great puzzles of the world." On this episode, we take a special trip to Australia to speak with Hempton about banks and how they fit into the way he evaluates good businesses and promising stocks. He notes that bank profit margins have been declining in places with both positive and negative rates. We also speak about how he picks stocks in a market currently trading at eye-watering valuations, why you shouldn't necessarily seek 'value,' and what investors can learn from the early 2000s tech bubble.

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0:00.0	Join us in New York on November 29th for the Bloomberg Canadian Finance Conference,
0:04.6	proudly sponsored by National Bank of Canada Financial Markets.
0:07.8	2023 marks the 11 year anniversary of our Canada focused event and continues the tradition of providing timely
0:13.8	insights and actionable strategies. We'll have senior government
0:17.1	officials from Saskatchewan, Quebec, British Columbia, Alberta and Ontario as well
0:21.9	as speakers from Northland Power, World Bank, Transolta, and many more.
0:26.0	Register at Bloomberg Live.com slash Canadian Finance slash radio. Hello, Odd Lots, listeners. It's Tracy Allaway. Before we get to today's show, I have a bit of news. It's something I'm really excited about.
0:44.6	Odd Lots is hosting its first ever live event on Thursday, September 19th in New York City.
0:51.2	Join me and Joe Wiesenthal as we host an all-star lineup of guests to talk about
0:56.7	everything from white collar fraud to sovereign debt and much, much more. This will be a group of new Odd Lot's guests plus a few old favorites.
1:06.5	We'll also have live, finance the music as well as drinks and just overall great conversation.
1:14.3	Details of the lineup are going to come out very soon, so keep listening to Odd Lots to learn
1:18.6	how to sign up to see us live on Thursday, September 19th in NYC.
1:24.0	Joe and I both hope to see you there. Hello and welcome to another episode of the Odd Lots Podcast. I'm Tracy Allaway.
1:48.0	My co-host Joe Wiesenthal is away this week. I happen to be on a work trip to Australia. I've never been
1:55.3	before it's fascinating I have big plans to meet a koala but beyond that I also
2:01.2	happen to be in the country for a momentous historic occasion,
2:05.7	which is the benchmark Australian bond yield
2:07.8	dipping below 1% for the first time.
2:10.9	I was also there when the Reserve Bank of New Zealand opted to cut rates by 50
2:15.0	bases points, which was something that shocked the market and just a couple hours later we had
2:20.1	rate cuts from the Central Bank of India and also the Central Bank of
	...

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