Ron Muhlenkamp's 2007 Q4 Quarterly Letter

Ron Muhlenkamp's review of events that impacted the markets during the past quarter.

The U.S. economy and the capital markets continue to work their way through the transition period which we’ve been discussing for nearly two years. We continue to believe that the economy will experience a “soft landing,” not a recession. Our mistake has been to believe that the markets would have a soft landing as well. That has been true for some industries but not for housing and financials, of which we’ve owned too much.
...
Bottom line: This transition has taken longer than we expected, but the pattern is familiar. We find it interesting that market participants alternate between despair and euphoria while the economy marches on and major market averages near all-time highs. We believe it’s a good time to put money to work.

Direct Link - Ron Muhlenkamp's 2007 Q4 Quarterly Letter.