Jesse Felder Blog | ‘The Most Attractive Buying Opportunity Of Our Lifetimes’ | Talkmarkets
Independent Investment Manager and Publisher
Location: P.O. Box 790, Bend, OR, United States
Phone: 541-389-3345
Contributor's Links: The Felder Report

Jesse has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he works with a select group of clients at Felder & Company, LLC in Bend, ... more

‘The Most Attractive Buying Opportunity Of Our Lifetimes’

Date: Thursday, March 14, 2019 8:00 PM EST

10 years ago this week, I wrote a post  that I’m sharing again now because I think it’s important to remember just how difficult it is to do the right thing in the markets at the right time. Things were so bleak back then that if you were optimistic you sounded and felt like an utter fool. Sometimes, however, there can be no better confirmation of your thesis. This was clearly one of those times. (Published March 12, 2009: “Fortitude In The Face Of Crisis”)

To quote Charles Dickens, we are currently facing “the worst of times.” By any measure, this is the worst economy America has witnessed in decades. However, for prudent investors in both stocks and real estate, “it is the best of times,” as we are now faced with a once-in-a-lifetime opportunity.

The financial world has seemingly come crashing down around us. The current bear market for stocks is the worst any living professional investor has ever seen. Real estate prices have been in free fall for the past couple of years, and foreclosures are growing at a record pace. Employment and the general economy have suffered mightily as a result. Not surprisingly, consumer sentiment has never been more negative than it is today. I could name all the melancholy records the financial markets and the economy have set recently but I will refrain.

Rather than lament the past, I am more interested in appraising the situation we face right now. Warren Buffett, the most successful investor of the 20th century, once wrote, “We like pessimism, but because we like the prices it produces. It’s optimism that is the enemy of the rational buyer.” After the bursting of the real estate bubble of the past few years, Bendites should know this lesson well. The effects of the horrific performance of both stocks and real estate, combined with the concomitant economic malaise, have created an equally dramatic degree of pessimism pervasive among investors and consumers alike.

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