The same logic, is why I am starting to take 1st positions in REITS. If wrong, then both CSL and REITS share price will drop further (because risk premium increases further, and market factors this into valuations).
The difference (I am hoping!!), is that I am compensated for some degree by the effective yield through the difference between NTA and discounted share prices on REITS.
With CSL I don't have this benefit (but I also don't have the same degree of long term earnings growth with REITS).
Interesting times.
But each decade brings its own opportunities and challanges.
What worked in previous decades often doesn't work so well in subsequent decades.
Just look at IBM, a market leader in the last century, but not this century. Another example AT&T.
CSL Price at posting:
$256.35 Sentiment: None Disclosure: Not Held
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