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Thursday, Jun 27
"It's hard to buy something down 80%," writes Mebane Faber, but it may not be a bad time to do...
"It's hard to buy something down 80%," writes Mebane Faber, but it may not be a bad time to do just that. The average 3-year return since 1920 when buying a sector lower by 80% from a peak is 172%, according to his research - think tech in 2002, homebuilders in 2009, and junior gold miners (GDXJ) today (gold miners GDX or RING are off nearly that amount). The returns are similarly enticing for entire industries and countries - think Greece (GREK) today.