Small Caps with Exponential Growth
Stansberry Investor Hour
Stansberry Research
4.4 • 677 Ratings
🗓️ 4 March 2021
⏱️ 67 minutes
🧾️ Download transcript
Summary
It’s not the sexiest part of the market, but Dan decides to break down bonds.
If you look at the benchmark ten-year bond treasury yield, it has tripled since last year. Does this mean the bond rally is over and we’ve topped out at the bond market? Or is inflation finally kicking in as yields climb?
Bond interest rates are the lowest they’ve been since there’s been data for this, and if the Fed keeps trying to stabilize and suppress rates, printing endless cash and buying new government debt, the more dire the economic consequences will be. They should just let the market adjust naturally, or we’ll have 2008 all over again.
Dan’s guest this week is Chris Retzler, a portfolio manager at a small-cap growth-fund for Needham Funds Asset Management. His fund thrived during the bear-market bottom, nearly doubling. Retzler’s forte focuses on nurturing long-term relationships with his portfolio companies’ management teams and seeking out undiscovered investment opportunities.
The appeal of small-cap stocks is the room for growth along with a more potent potential for gains -- but how does Retzler make his market picks? His fund has succeeded during the pandemic (Moderna is in their portfolio), but what exactly are the best small-cap markers?
It appears getting acquainted with management is a vital first step in investing with emerging small-cap companies. To be a concentrated investor, you have to know with whom you're investing. Regarding small-cap tech opportunities, look for capital-intensive companies that don’t have a lot of competition in the same space, e.g., semiconductor makers. And he highlights telemedicine as a surging fertile investing ground for explosive growth.
Oh, and always follow Warren Buffet’s four basic tenets of investing.
Listen to their conversation and much more on this week’s episode, including mailbag questions that cover everything from aluminum to acquisitions.
Also, check out a new episode of Stansberry’s podcast where politics and economics meet, American Consequences with Trish Regan.
Transcript
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| 0:00.0 | Broadcasting from the Investor Hour Studios and all around the world, you're listening to the Stansberry Investor Hour. |
| 0:11.5 | Tune in each Thursday on iTunes, Google Play, and everywhere you find podcasts for the latest episodes of the Stansberry Investor Hour. |
| 0:20.0 | Sign up for the free show archive at InvestorHour.com. |
| 0:23.6 | Here's your host, Dan Ferris. |
| 0:25.6 | Hello and welcome to the Stansberry Investor Hour. |
| 0:28.6 | I'm your host, Dan Ferris. |
| 0:30.6 | I'm also the editor of Extreme Value published by Stansberry Research. |
| 0:34.6 | Today we'll talk with Chris Retzler. Chris manages a small cap growth fund |
| 0:40.8 | for Needham asset management. The fund has done great since the COVID bear market bottom, roughly |
| 0:46.3 | doubled off of that bottom. I'm real curious to see if Chris is excited about any new small |
| 0:51.4 | cap ideas today. This week in the mailbag, listener Romeo B has a question about acquisitions. |
| 0:58.0 | Listener Taylor S asks about aluminum of all things. |
| 1:02.0 | And Lance Kay says he loves our interviews, but he's disappointed in me. |
| 1:07.0 | In my opening rant this week, I want to talk about bonds and the relationship between |
| 1:12.4 | stocks and bonds. That and more right now on the Stansberry Investor Hour. Bonds. Why talk |
| 1:21.7 | about bonds? Well, a lot of people are talking about them because if you just look at the |
| 1:26.4 | benchmark 10-year treasury yield, |
| 1:29.1 | it bottomed out around 40 basis points last summer, July, if I'm not mistaken, just eyeball |
| 1:34.1 | in a chart here. And it's continued, it's close to 1.5% now. So that's, you know, kind of like |
| 1:40.6 | a little more than a 100 basis point move, you know, just about a tripling, |
| 1:45.9 | a little more than a tripling of the yield off the bottom. So, you know, does that mean anything? |
| 1:51.7 | And if so, what? My view of this right now is really not an answer. It's a question. I've been thinking |
... |
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