For the family that owed $200,000 on a house worth $200,000 in 2011, it didn't much matter how "affordable" houses were. Now that their home is worth $275,000, the picture has become markedly brighter. This phenomenon is known as the "wealth effect," and it is legitimate.
What's Good for the Goose ...
The same logic can be applied to corporations. As stock prices have appreciated since 2009, companies are able to take advantage in unseen and underappreciated ways.
At the time of publication, the author was long FGP. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. Follow @ArgyleCapital
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