Buy shipping cyclicals on pessimism, not dividends
The optimal strategy for cyclical shipping equities is to buy when valuations and dividends are low, and sell when blowout dividends are announced.
The argument
The guest argued that cyclicals are cheapest at the top of the cycle when P/E multiples look deceptively low due to peak earnings. Investors should buy when P/E multiples look bad (e.g., 10 to 12) and dividends are low, because that is when pessimism is fully priced in.
Hear it yourself
"I find that it's usually better to buy when multiples look awful when they're treating a a PE of, let's say, 10 or 12 because it kind of expresses the fact that earnings are pretty bad."
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