Ron Muhlenkamp's Recent Commentary

Ron Muhlenkamp released his commentary on Aug. 17, 2007.

• We were in a transition period: The Federal Reserve’s interest rate actions would bring about a “soft landing” in the economy as opposed to a recession.
• Sometimes you need to buy them, then, ignore what’s taking place in the market on a day-to-day basis.
  
• Finding good companies isn’t all that difficult to do. The frustration is when you buy a good company at a cheap price and, in the days and months following, it gets cheaper still.
• What the media and the markets are calling a “liquidity crisis” is, using my analogy, just a matter of folks who last week were willing to bid on a house and, this week, have decided to wait a week or two to see what happens.
• Leverage works both ways. When things are good, leverage can make them great. When things are bad, leverage can force strange behaviors.
• Right now, there are good companies selling cheap because some investors don’t know how to price them. Therefore, this is a great opportunity but it does take its toll on the stomach. Often In the past, a good stomach during such periods has been rewarded.

Direct Link - The Current Market and What We’re Doing about It (PDF).