One of the biggest conundrums investors can face is when a market abandons the fundamentals for a broad-based sell-off in its names. Not so very long ago, I can remember Ford (NYSE:F) at a buck, Bank of America (NYSE:BAC) at $2, and Pulte Homes (NYSE:PHM) at $3. The desire to flee during the financial crisis had created once-in-a-lifetime fire sale prices in those blue chip names.
Thus when questioning the recent fall of Gafisa (NYSE:GFA), an investor might ask himself, "What does political upheaval, a rise in inflation, street-riots involving millions, and a sudden crash in emerging markets (to the tune of 20%), do to the price of assets in those markets?"...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|