REA having a bear market rally?, page-26

Good job.

However, chances are you will be able to buy this lower and that is my intention as well. I have reasonably poor sell-side discipline (late in selling) but the opposite for buying. I track companies for ages before pulling the trigger partly due to the poor sell-side discipline. Granted this is a blind spot for most investors who are not day traders.

Not willing to repeat what I said on the MQG thread, I believe the Macro picture is underestimated by the majority. In Short, we are at minimum looking at very low growth rates, possibly a recession. 2/10s is close to inversion and headline CPI was 8.6 which is a record for 40 years.

There are company-specific factors for REA.
1. When the interest rates are high, sales volume goes down. That will impact the revenue of REA.

2. REA is a growth stock and growth will slow down with multiple contractions

3. REA operates in a very Interest rates sensitive area. FED and RBA cannot control the food prices or the energy prices but they will reduce the demand for housing.

4. REA has never been in an environment where central banks around the world are tightening, and QT and the valuation will get cheaper. I believe this is one of the reasons the market has punished REA and more pain is yet to come.

I would wait until I see some clarity around interest rates. Another important point is previous cycles FED PUT has become a FED call. This for me is the biggest paradigm shift in this cycle. Previously, as soon as the market declines, FED comes to the rescue. Now it is the exact opposite. If the market is trending higher, that implies the FED is not doing its job and easing financial conditions. So in a way upside is limited. This needs getting used to as it is a very novel concept.

This is the reason I believe you can wait without a huge opportunity cost. DYOR