EP 25: What I Learned This Week (with Kiril Sokoloff)
Apr 22, 2024
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Kiril Sokoloff, founder of 13D Research & Strategy, shares insights from his 40-year career and 'What I Learned This Week'. Topics include market evolution, rise of algorithms, gold in institutional portfolios, Costco's gold sales, emerging market dynamics, US dollar weaponization, and historical currency declines.
Practical History of Financial Markets course at Library of Mistakes offers valuable insights for investors.
Gold's role in portfolios has evolved, with increased interest as a hedge against economic uncertainties.
Deep dives
Evolution of Financial Markets Structure
The financial markets have undergone significant changes over the years, with market dynamics shifting from free markets to algorithms dominating trading. Price determination has been impacted by the financialization of markets, leading to a focus on trend following rather than investing for the future.
Contrarian Investing in the 1980s
In the 1980s, there were notable turning points in financial history, such as the call on inflation ending and strategic investment in Hong Kong equities. Contrarian moves, like investing in specific assets against consensus views, proved profitable in times of market misperceptions and extreme valuations.
Asian Economic Miracle and Key Indicators
The Asian economic boom in the late 1990s, termed the Asian economic miracle, faced a downturn due to unsustainable valuations and rapid market changes. Early indicators of market corrections, such as rate of change in asset values and monumental construction projects, highlighted potential downfalls in the region's financial stability.
Gold as a Strategic Investment
Gold has been a pivotal asset class, indicating inflation trends and serving as a store of value over the years. The role of gold in institutional portfolios has evolved, with shifts in global dynamics triggering increased interest in gold as a hedge against currency devaluation and economic uncertainties.
For 40 years, Kiril Sokoloff, the founder of 13D Research & Strategy, has been picking some of the biggest turning points in financial markets. And, in 2001, he launched 'What I Learned This Week' – a must-read for anyone in the investment community. In this interview with Russell Napier, Kiril shares some of the insights he has gleaned across a long and successful career.
•The Library of Mistakes runs an outstanding course called the Practical History of Financial Markets. To find out more, go to: www.libraryofmistakes.com/course
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