Well that post aged well. Corona no virus for global stocks? Over the past few days, global stock markets have given up all of 2020’s gains and then some.
Not quite. But that’s almost as good as my inclusion of Blackmores on a list of 3 darling stocks to sell in 2012. The placebo maker promptly jumped fourfold.
On a serious note, if you are a client of ours, you should be thankful for volatility and panic. Last week’s post was me trying to explain the market’s benign response to COVID-19, not celebrating it. An environment of markets rising steadily, high valuations and lots of investor optimism is our worst nightmare.
Forager’s main competitive advantage is the ability to not lose our heads on the way up, or the way down. The emotional wherewithal to be “fearful when others are greedy and greedy when others are fearful”. It’s a skill that has been worth two tenths of stuff-all over the past few years.
No one wants to see people dying. And we are nowhere near bargain territory. But the human emotion of fear, depressed for so long, seems to be alive and well in financial markets. Maybe, just maybe, we still have a role in the world.
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Forager Funds is a boutique fund manager specialising in a value investing approach. We offer an ASX listed Australian Shares Fund as well as an International Shares Fund both aimed at delivering returns for long term investors.