November 09, 2012

James Grant Likes Gold & Metropolitan Life

Grant founded his firm is 1983 and predicted correctly the Japanese bubble and housing bubble
• Tongue in cheek legal disclaimer is that “Congress shall make no law abridging the freedom of the press”

Jim Grant's First Idea: Metropolitan Life

• Metropolitan Life
o Japanese life insurers died out in long run.
o 825 billion of assets - a great franchise
o Long due to potential for dividend.

Jim Grant's Second Idea: Gold

• Gold: is a “legacy monetary asset”
• 1920 there was a depression (not Great Depression). 18 months after peak then industrial production jumped significantly
• "I'm a professional interest rate observer. There are none"
• Grant notes interest rates move in generational cycles

James Grant originated the "Current Yield" column in Barron's before founding Grant's Interest Rate Observer in 1983. He is the author of five books, one of which is Mr. Market Miscalculates (Axios Press, 2008).