Pierre De Vitton

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  • What Companies Benefit (Or Not) From A Weaker Yen?

    By Pierre De Vitton - April 8, 2013 | Tickers: AFL, COH, INTC, TM

    The yen has been a strong currency for the past four decades, quadrupling in value against the dollar. Despite the fact that Japan has had a bad economy since the early 1990s, low inflation, a savings surplus, and competitive industries have sustained the yen's strength.

    However, the situation is now changing for three reasons.

    Reason number one: a deteriorating corporate sector

    Japan's nominal GDP in 2012 was 9 more »

  • The Battle Over the Future of Shale Gas Exports

    By Pierre De Vitton - March 15, 2013 | Tickers: CVX, XOM, DOW | Editor's Choice

    Nothing like a good old fight between major corporations.

    Remember Mitt Romney's famous words during the last presidential campaign? "Corporations are people too, my friend." Well, rest assured I'm not here to discuss the degree of humanity of corporations. But maybe Romney was on to something: Corporations do sometimes embody the zeitgeist of their time and place. What could at first be dismissed by some as nothing more »

  • Is The Shale Gas Boom A Second Gold Rush?

    By Pierre De Vitton - February 7, 2013 | Tickers: CVX, XOM

    It's been the talk of the town in 2012. Unless you've been living in a bubble or hiding in a Tibetan monastery (and even there I'm sure the monks have Wi-Fi) you must have heard about it. No, I'm not talking about the Gangnam Style video or about Clint Eastwood discussing Medicare with a chair. I'm talking about the shale gas boom in the United more »

  • Money From Smoke Vs. Smoking The Money

    By Pierre De Vitton - January 16, 2013 | Tickers: MO, BTI, LO, PM, RAI

    Let us imagine a regular 25 year old man who smokes a pack of cigarettes a day. If he were to live in New York City, he would spend around $10 daily for a pack of Marlboro Reds. This equates to $3,650 dollars per year. If he'd then decided to stop smoking for only one year out of his 71 years of existence -the average life expectancy of more »

  • In Gun We Trust

    By Pierre De Vitton - December 21, 2012 | Tickers: SWHC, RGR, WMT

    In the aftermath of the Newtown massacre, the endless debate about guns and how the second amendment should be interpreted is once again raging all across America. Talk about novelty. I don't believe in cynicism, only in human nature. One of the greatest investors of all time, Charlie Munger, regularly talks about the importance of incentives in order to understand human behavior. The same logic can be applied to more »

  • Is Silver The Next Big Thing?

    By Pierre De Vitton - December 17, 2012 | Tickers: AG, PAAS, SLW

    I don't know about you but I'm getting tired of gold. Gold gets all the good press and everybody loves to talk about how great gold is (everybody except for Warren Buffett and Charlie Munger). Do the test: choose ten people around you at random with some knowledge of financial matters and ask them what the price of gold is at the moment. I would bet that most more »

  • Is Brazil In For a Hard Landing?

    By Pierre De Vitton - December 12, 2012 | Tickers: VALE, EWZ, PBR, BZQ

    Everyone loves Brazil. How couldn't you? It's got everything going for it: stunning beaches, great weather, beautiful women, a large domestic market, a vibrant democracy and abundant natural resources, from iron ore to oil, from soybeans to sugar cane. Most economic news that has come out of Brazil lately has been excellent: the South American behemoth just overtook the UK as the world's sixth biggest economy, FDI more »

  • What Can a Big Mac Tell You About Overvalued Currencies?

    By Pierre De Vitton - November 30, 2012 | Tickers: VOLVY, FXA, FXS, MCD, CROC

    Sometimes the best explanation to a complicated and seemingly mysterious phenomenon is the most simple one. This may very well sound like Philosophy 101, but it is a concept that can be used in many areas of life. I am going to heed my own advice and apply it to the Forex market in order to see which currencies are the world's most overvalued. To perform that task, I more »

  • How to Benefit from China's Preference for the Crème de la Crème

    By Pierre De Vitton - November 26, 2012 | Tickers: COH, RL, TIF

    China's middle class is the future. Investors that will manage to find ways to benefit from this new phenomenon will be retiring early and moving to the Bahamas.

    Why am I so confident about China's middle class, you may ask? Well, there are many reasons, but I will summarize it by giving you 2 numbers: 300 million and 25%. The former is the size of the current Chinese more »

  • So you Want to be Rich? Buy a Tractor!

    By Pierre De Vitton - November 1, 2012 | Tickers: RJI, RJA, SANW, TSCO

    Investment legend Jim Rogers is right on the money: the future is in farming. I agree. Not that I plan to go into farming myself (you have to get up at 5am every day, not my cup of tea). But I've looked into Jim Rogers' views -after all, anybody who has made a $300 million fortune in the stock market the way Rogers has, if he says anything I more »