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.
Our strategy is to position such that if a rebound does occur, we’ll see a stronger positive response from our individual holdings than from its benchmarks.
When markets refuse to respond to negative news with continually falling prices, that's sometimes a sign of bottoming action. Here are two stocks we are purchasing.
The mantra I adhered to – both while leaving Colgate and sitting at the trading desk – was first to take a deep breath, and then focus on the higher reality: we had planned for this and we were in a pretty good place.
The large correction in August increased the population of depressed share prices and created buy opportunities for companies showing the Surprise pattern.
After such a big correction in the equity market, the probability a full-blown bear market increases if earnings start to slow down significantly.