I must say I'm getting tired of reading so many who write that there are no values in the stock market. I've written a number of times on valuations of various tech stocks less cash; as well as a number of banks over the past year which I feel provide value.
What about nearly all of the P&C/Life insurers with a market cap over $2b? HIG, ALL, TRV, PRU, etc...
This would include AIG by the way. Don't want to believe me? Then I guess that really crazy guy running Fairholme Fund who has beaten the market umpteen years in a row is totally wrong....
How about stocks tied to farmland? It's been a while but I would doubt the TRC is selling at a crazy town multiple of book value. And timber? Same. I'll say it's probably quite reasonable without even checking based on where we are in the economic cycle.
I think there is likely tremendous value in the stocks/banks tied to California and Arizona and Florida real estate, but I'm sure that makes me sound like a loon. That said, this is no more crazy than me saying the banks would earn out write downs many times over (all in my past posts) -- which has occurred quarter after quarter since the ill-fated FAS 157 was repealed.....
It's not the gains today that are fiction. It was a huge portion of the losses post Bear Stearn's demise.....
Last Thursday was all about a world awash in futures with no limits, algo traders that position themselves as close to exchanges as physically possible, trading curbs that were eliminated, an uptick rule that was eliminated, levered ETFs gone wild, and an ECB that had not acted in unison with the Fed. Not to mention the insane no rule, no exchange, no self regulatory world of the credit default swap.....
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment