Jean-Luc Nouzille
5 posts
Why did we sell Morgan Stanley? Because public disclosures about banks’ sovereign debt exposures are useless in order to ascertain the level of risk with a reasonable degree of confidence.
Expectations for 3rd quarter corporate earnings and economic growth were probably too pessimistic going into October.
The well-documented missteps at Hewlett Packard provided us with what we feel is an opportunity to buy shares in a company that remains competitive in most of its business lines, generates a lot of free cash flow, and has a sterling balance sheet.
We can’t help but think that the current negative mood greatly exaggerates the deterioration in economic and business fundamentals, but pessimism can become a self-fulfilling prophecy.