We have headed south for over a month now - we haven’t seen this type of pullback in four years.
There probably will be some recovery, as so many quality stocks have been lowered to more than reasonable P/E ratios based on forward months earnings projections.
That is all well and good, but that little dust up over in the Middle East doesn’t appear to be ending anytime soon.
I am not sure the strategy in place, but it seems something akin to what is happening to Cuba.
If that is the case, it will really be expensive.
Oil prices will remain higher and inflation will be a real factor.
That is all speculation on my part however and things change fast these days.
I will say that it was not a great week for Meta (Facebook) losing two court decisions about the problems caused by content on children.
This is not a singular lawsuit and more are coming.
Of course they will be appealed, but there is a trend building with more lawsuits in the mill.
In a related matter, not all is perfect in AI as there are not unlimited funds available to develop new products.
Several well-known and touted products are now on the garbage pile.
These setbacks are priced in the billions.
Some of this concern has hit the private equity market where withdrawals are being limited, upsetting individual investors.
This is what you get in the unregulated markets.
I am no fan of government regulation, but people have to realize what they are getting into.
Far too many times investors just chase yield or the promise of yield.
In public markets you can exit at almost any time.
There always is a price to pay for higher yields.
That is not to say one shouldn’t look for better returns, just don’t be surprised if something in fact turns out to be too good to be true.
I am always amazed by the advertisements that portray some investment analyst who has the secret sauce to making money and they will let you in on the deal.
Now seriously, if you had somehow found a methodology that worked, why would you let others in?
I understand sharing, but this is only about them making money.
I will have to say that the impact of the current events in the Middle East will be felt.
There is no way that this will end quickly.
The real question is whether we are willing to go the point of essentially destroying a country to accomplish a goal.
I am not sure we will have any choice.
Predicting the outcome is much more onerous than touting a stock buy.
We are on for the ride, whether we like it or not.
Such are the occasions that provide opportunity believe it or not.
Every new situation provides new avenues to explore. This is what I find so interesting about economics.
There are so many variables that must be taken into account.
What you try to find is the one that the majority gets wrong.
You make money being outside the crowd every time.
