Fun & games in the markets

This - with a bit of luck - is when the value style pays off

I apologise for the lack of updates recently - particularly given the liveliness of the markets - but I’ve had a lot of other things going on.

I don’t have anything useful to say about the overall market. My general view remains that equities are highly valued - on cyclically adjusted price-earnings or Tobin’s Q - and don’t price in a slowdown. I wouldn’t be surprised if they go substantially lower over the next year or two.

I don’t plan to do much. I invest long-term and will live with the market’s ups and downs. In general, however, I try to maintain a low market beta.

I hope everybody’s portfolio is bearing up. I’ve taken some pain on large caps such as Old Mutual and BT, but smallcap value positions such as Haynes and CML have barely been affected so far. I may review Haynes given its exposure to the US consumer.

January 22, 2008 | Filed Under Markets & macro

 

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