Shifting Money from Wants to Needs Maintain a View of the Economy and Overall Market at All Times

Value Investors Can Benefit from Breakdowns in the Private-Equity Model

You could argue that for the past 10 or even 20 years, equities haven’t been allowed to get cheap. When it appeared the market was really going down – in 1987, 1998, 2000 – the government tended to intervene to prop it up. In the past fifteen months we’ve seen a complete breakdown of the private-equity model – since there is no available leverage – and we’re starting to see stocks trade at whatever price. There’s a much higher probability that fundamental value investors in this type of period will be able to add value with specific stock selection.