“Be fearful when others are greedy. Be greedy when others are fearful.”
“People are habitually guided by the rear–view mirror and, for the most part, by the vistas immediately behind them.” – Warren Buffett
Legg Mason’s Letter on Current Equity Premiums and Investor’s Views on future Growth Investors current May 2012 expectations for stocks
The Market as a discounting Mechanism
In September 2011, I posted on the bad news cascading in the housing market: http://wp.me/p1PgpH-2g and I posted the link below to show the charts of various home builders’ stocks.
Behold, the stocks are up about 50% to 100% now that the news is becoming positive. Note the Presentation from Doug Kass:Kass-ValueInvestingCongress-5712 –go to the last three pages to view the need for housing stock.