1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Ronald Muhlenkamp: It’s an opportune time to be investing

July 22, 2006

I have frequently been asked to compare the current economy and markets to prior periods. In this vein, I believe the following:

• The economic and investment climate is most similar to the early 1960s; good GDP growth and contained inflation.

• The current stage of the business cycle looks most like 1994-1995 —

a soft landing or slowdown after a nice recovery from recession.

• The current psychology and market action are volatile. There is so much money, managed both professionally and privately, which is seeking to latch onto the latest fad or trend and then to be the first

one off (which is the hard part) that the markets will remain quite volatile. We think this will continue.

Many think that volatility is a bad thing. We think it is a good thing, allowing us to buy cheap or sell dear.

Because we like the climate and the seasons and, most importantly, we think we’re finding good companies at cheap prices (some of

which we own — and have gotten cheaper), we think it’s an opportune time to be investing money in our companies’ stocks.

Read the complete commentary

Rating: 3.0/5 (1 vote)


Please leave your comment:

Performances of the stocks mentioned by

User Generated Screeners

DBrizanROTA22nov2017 943p
pbarker4652 week
pbarker46E&P CDN
moorebpLeveraged small-caps
kazu2016-12-15 Gori bu
mkettler0217hunting grounds
wqecapitalscreening value growth
wqecapitalscreening 1 value growth
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat