Public company valuations are lofty and do not reflect belt tightening from consumers and increased costs for materials / wages and interest rates (borrowing) lower net margins and profits (% wise) will suffer. There is a significant lag as interest rates bite. Valuations need to drop also due to risk free rate< valuations do not reflect this imo also.

Reminds me of the property market when you have a Mexican stand off where properties sit at high valuations but people cannot get mortgages at required rates to afford said properties and prices will adjust lower over an extended period.

There will be forced sellers due to refinancing required and similarly companies will start announcing poor results and worsening outlooks as DG did today.

Grind down throughout 2024?

Berkshire Hathaway FAQ

---

Contact Shrewd'm
Contact the developer of these message boards.