Enterprising Investor Forum

More of the same… Wednesday, August 6, 2008

Is it possible that it’s all about OIL? Most people tend to agree that Oil is too high and that at the 150 level we incurred demand destruction but when will the markets stop this Oil vs. Financials trade?

Most probably, what is happening is also that with so much uncertainty, this trade is the safest bet! What does this mean for Value investors? Well, it means that we are experiencing a very volatile market that gives us the opportunity to buy 6-10% dips in great companies that are already trading at highly discounted prices.

Remember that you most important task is to filter out the noise and focus on fundamentals, don’t get caught up in the market game!