Letter # 81 | 29 March 2022 |
Today, we discuss two eras – one, where the Metals Index zoomed 22 times, and another where valuations of consumer companies expanded materially.
I submit that your evaluation of the permanence of the current situation (commodity prices compressing earnings of consumption businesses, and higher interest rates deflating their multiples), depends disproportionately on the era that influenced your mindshare/portfolio.
I present a hypothesis, you tell me if you agree. Here: investment strategies: Consumption vs commodities – where is your bias? – The Economic Times (indiatimes.com)
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