During his recent interview with the Fatal Conceits Podcast, Vitaliy Katsenelson explained why this is the time to get excited if you’re a value investor. Here’s an excerpt from the interview:
Katsenelson: As a value investor, I’ve never been more excited in my life, because it’s suddenly, stock picking is back again. Being a rational investor, making rational decisions. When interest rates are very low, the bigger the story… The greater part of your imagination the story can capture, the more money you’re going to make as a public company.
This is why you had all these companies trading these insane valuations, right? Because there were not trading fundamentals. They were, because it didn’t matter, because they can say, Listen, in 2040, we’re going to make this much money. And since the interest rate’s at zero, it might as well be today, because of the discounted 0% interest rate.
Now today, what high interest rates did, they deflated a lot of bubbles, and they brought back common sense. So as an investor today, I’m more optimistic about investing than I’ve been in years. So, that’s from one perspective.
You can listen to the entire discussion here:
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