Bargains, bargains, bargains!
“Bargains, bargains, bargains!
Gosh, these are extremely difficult markets at the moment.
The bearish factors at play are obvious – the war in Ukraine, rising geo-political tension, inflation, interest rates that don’t reflect inflation, fear that interest rates will soon have to reflect inflation and the likely popping of the global debt bubble.
Ukraine aside, these aren’t anything new, it’s just now they all seem to matter, when previously they didn’t.
Where to hide? Bonds are tanking, stocks are tanking, commodities are tanking, precious metals are tanking, crypto is tanking, even cash is tanking – in that it’s losing 10% of its purchasing power every year.
Well, that last point may be true, but during a global margin call, cash suddenly starts to look valuable.
The good thing about bear markets is that they don’t last forever. Not knowing when this one will end, but it will end, eventually.
At a certain point, real businesses with cash flow are going to look very attractive – if they don’t already.
The secret I guess is to look around at all those companies you wanted to buy when times were good. Have they changed? Well, now’s your chance to pick them up at a discount.
When TV’s and computers are on sale, people queue overnight round the block to get their bargains. When stocks are on sale, everybody panics.”*