All of these fears led to a broad decline in world equity markets as witness by a 12.7% decline in the MSCI world index and a flight from risk assets. The real question though is do these fears have any real impact on the long-term profitability of commercial business enterprises or are they simply a giant price discount that investor should pounce on.I’m sure you can guess our view. The one constant fact that seems to be perennially ignored by investors is that companies are run by people and the people react to changing economic situations. If there is inflation, they manage for inflation, if there is economic slowdown, they manage for economic slowdown. And although unanticipated changes in economic factors can cause an earnings dislocation, it is rare that fully anticipated changes will cause a problem.
Pzena Investment Management, Inc. Q2 2010 Earnings Call Transcript
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.