If you believe that credit anticipates and equity confirms then have a look at the latest chart posted on Zero Hedge:
This is chart reflect credit markets ahead of the Greek elections this weekend. I am considering entering a handful of long positions in the US market this week and this action has caused me to consider pausing. While some think this is too much detail for a value investor, I'm looking for the widest margin of safety on my entry point. Given the likely global recession that will set in in the later part of this year I will probably keep more powder dry in the event that the whole market is dragged down but it will not prevent entry.
Bottom line, I am not trying to catch the knife or haggle over a few basis points if my thesis places the equity well under its value. Volatility is the current market trend and from a fundamental value perspective, my targets look cheap and have good room for growth. If they lose a couple percent in the next couple weeks or months, ain't no thang.
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