Strategies
3459 posts
To illustrate the inflationary pressure we are experiencing, I’ll draw an analogy to personal household finances.
On August 4th, Reading reported Q2 earnings that were nothing short of spectacular. With the 60% growth in book value from last quarter, the gap between where the stock currently trades and the book value has actually widened.
The evidence seems to be telling us that equities are becoming quite attractive. The dust probably hasn’t settled yet, but we believe the bargain bins are filling up.
Diversification by country, currency, sector, region, riskiness, or growth-rate is always compelling in portfolio management.
Hope for more Fed intervention coupled with fear about Europe will likely create large price swings in stocks in the next months.
We will not let a market correction deter us from buying stock of producers that supply the developing world.