Equity market sell off

Posted on | Friday, February 12, 2010 | No Comments

The global macro theme doesn't have much to do with the domestic equity market sell off. We've been pricing in future growth for a year. Apparently it's here and we've recovered fundamentally. If that's true, we should sell off as our future pricing in of growth has been fully realized. Markets are forward looking discounting mechanisms, not real time. Those appearing on TV who "don't understand the reason for the sell off given the strong fundamentals" are simply foreshadowing their eventual demise.

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