Claude Lemire on Stocks, Gold & Technical Analysis

Claude Lemire was a founder and later president of the very successful Canagex Placements, a $14 billion Montreal based money management firm that was later acquired. Claude does his own fundamental research and technical analysis. Over the years, he has found the majority of major brokerage research to be untimely and inaccurate. His preference has always been independent research services that he feels offer more quality advice. His focus has always been the many “overlooked and undervalued companies” that the brokerage houses fail to follow until they are much higher in price.

He cautioned me in 1995 that a danger to the markets was that the large banks and brokerages had become too powerful and focused on their own self-interest rather than finding and researching undervalued stocks. He has complained about that for years and the situation has become worse.

Currently, Claude is advising pension funds and investing for himself. He is not bullish-to say the least. I should mention that he was generally positive for the overall stock market until last April when he told me for the first time that he was no longer bullish for the large industrial stocks (S&P 500, Dow Industrials). To Claude, the bull market is over while the QEing has carried it but the true uptrend is over. His favorites now? Gold mining companies!

He believes that we are entering an economic period that will be similar to the nineteen thirties….difficult times! However, Claude feels that the stock markets still offer exceptional investment opportunities as weak economies and bear markets put numerous stocks “on sale” regardless of weak economic conditions. He knows full well that few investors ever take advantage of the “sales.” He also adds that maybe another year or two of a poorly performing stock market would hopefully provide a bottom. He is not looking as some are for a Dow Jones Industrials at the 5000 level at the end of the bear market. A 13000 or 14000 Dow downside could prove adequate. 

Claude has been patiently accumulating specific Gold mining stocks over the last two years during the current period of price weakness; some have already had dramatic moves up. He had not expected an immediate move up in gold bullion, but now his analysis suggests the “debut of a new bull market in gold.” He adds that we while are completing a bottom in gold a harsh correction down may still occur. Yet, he does see a strong possibility of a substantial move up in the price of gold bullion. His analysis indicates exceptional undervaluation in many mining stocks which he attempts to take advantage of.

Worth mentioning is the fact that Claude has been a true believer in technical analysis for years. After doing extensive fundamental research on a company, he carefully studies its chart to determine at what price a position should be considered. Yes, he is a technical analyst as it is such a vital tool for successful analysis.