It is quite clear by merely looking at the current state of the stock market that investors want nothing to do with equities right now. We think this is a huge mistake. As a portfolio manager for more than 40 years I have always found it odd how out of sync I am with general investor attitudes. I tend to find myself giddy when most investors are panicked, and panicked when most investors are giddy. Therefore, you might guess that I am currently giddy, and you would be correct.
Why am I so giddy when pessimism is at a peak and investors everywhere are so full of doom and gloom? The answer is simple. I am giddy because everywhere I look I see my favorite investments currently on sale. From the important perspective of valuation, most of our country’s leading multinational large-cap blue chip companies are trading at attractive valuations not seen in almost 2 decades.
Today many want to dismiss the investing principle “buy low, sell high” as a mere cliché. I, on the other hand, see this as one of the most important principles required to get investing right. To me, it’s counterintuitive to avoid equities when they are low. Common sense would dictate this to be a great time to build long-term positions in outstanding companies. Fortunately, I am not alone in my views, but I’m certainly in the minority today.
….read more HERE