RAC - Charts & Price Action, page-10916

People are probably throwing the baby with the bath water, be it as a company, a sector or the whole of the stock markets.

As Charlie Munger would call it, a Lallapalooza effect!

- There is change in interest rates to respond to the inflation which was caused by the money printing to support the economy.

- There is a war not least because the west wants to push the NATO borders but everyone believes the mass media blaming Russia.

- The war has increased fuel prices and commodities which absolutely affects some industries and economies.

- The agri industry probably got a short in the arm because Russian+ Ukraine which supply 30% of wheat meant these countries would probably not be harvesting (Ukraine) or be affected by sanctions (Russia). So Australia was probably going to be a big beneficiary of it however the recent floods on the Oz east coast could have dampened it a bit

- US barely finished their year end tax sell off and the war impacts came in addition to the interest rate revisions so the US market is broadly down. US being down also have similar psychological effect on investors down under

- To round out everything above, there is fear and panic that becomes a self-fulfilling process

I am sure I would have missed a lot of other factors or misinterpreted some factors but this my thinking for now.

If Race was cheap at $3.5 considering its future potential we got a further 30% off as futher margin of safety. The question is, am I brave enough to act and buy when the Mr.Market is offering a value deal or would I be paralysed into action? I have increased my positioning 25% in the last couple of weeks and will do more as the opportunity continues. What will you do Sir/ Madam?