REA having a bear market rally?, page-5

I agree with most apart from inflation being transitory.

We have to be very brave to use this as the person who invented it admitted he should not have used it. He is still yet to admit he is so far behind the curve.

According to the "Taylor rule" the Fed rate should be close to 10%. I think half of that number is catastrophic. There is a huge amount of money supply that needed to be flushed out. Although the public markets are correcting the amount of excess build-up in the private market has not even begun to correct. Do we honestly think you can control the inflation of 8% with a 3% terminal rate? I don't.

I am worried about the REA-specific things which I outlined above. But I am more convinced because the Macro picture is so dire the overall market goes south and REA goes with it. It is already happening.

Long term this is one of the best stocks right along with MQG. Short term this goes lower. The multiples although in historical terms are reasonable, probably can contact much more.