Tuesday, October 6, 2009

I am scared.



Really, this idea of a 'V' shaped recovery that is being thrown around simply seems to be too good to be true. Hell, if oil isn't completely traded in dollars, that wouldn't help anything either; despite that fact that we prolly deserve the smack in the face that a move of that nature would be. While the above picture certainly isn't any evidence that the market will be going up or down in the future, it is interesting to see how things have happened, when compared with other crashes.

Frankly, I am presently pretty nervous, as there are not nearly as many compelling valuations when compared with virtually any other point in the past year... We were all spoiled with a plethora of companies that were selling for under 5x sustainable cash flow and/or less than cash minus all liabilities. Until sales of antacids fall, in the Kingdom of Value Investment, Cash is King, Pricing Power the Queen, and as always, Jim Cramer is most certainly the Jester.

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