Ross Gerber Shuns Europe, China Markets For Investment: “America Is The Only Game In Town”
In his February shareholder meeting, Ross Gerber, portfolio manager of Gerber Kawasaki ETF (NYSE Arca: GK) took it out on the European market, saying it is “always a nightmare to do business” in the continent.
“You wanna put a million dollars to work, you’re gonna buy a bunch of European companies? Why?” asked Gerber in the meeting.
The CEO of his namesake investment firm started the meeting by laying down his economic outlook for the year as the world reels in from the impact of the COVID-19 pandemic.
“During recessions, people lose jobs, earnings go down, business cut back spending… and people cut back their spending… Does that sound like today? No. What’s today? The opposite of a recession. It’s called a booming economy,” said Gerber.
On Thursday, the US Labor Department said the consumer price index reached a four-decade high of 7.5%.
In hyping his perceived economic recovery for 2022, he said the year “is going to be fun,” adding that it will be “all about America.” He supported this by taking on the Chinese market, saying it is “hiding from Omicron [variant]…worst strategy ever”, adding that the Asian country is “uninvestable right now.”
“Europe? Always a nightmare to do business. America is the only game in town,” he added.
He then listed American companies that he suggests where investments should be placed instead of European firms. This includes Apple, Disney, Netflix, Amazon, Google, Microsoft, NVIDIA, and Tesla.
It is worth noting that in September 2019, Gerber tweeted that the “FAANGs dominance is coming to an end.” The acronym stands for the American tech giants including firms he recommended in the meeting.
He also noted that there are “reasonable valuations [going] down” and “tech stocks pulling back”, but he asserted that there are “great earnings way better than expected” which he expects to continue into 2022.
“All these earning estimates from all these genius analysts are wrong. They’re all wrong. 100%,” he added.
However, the polarizing investment manager drew negative reactions on social media, with some bringing up his past endorsements of firms like Peloton that eventually had their prices go down.
In January 2014, Gerber also called bitcoin “a scam” in a tweet but later revealed that he bought the cryptocurrency.
GK ETF last traded at US$23.02 on the NYSE Arca.
Information for this briefing was found via the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
