Excerpts from the Forbes interview:
But we are in a recession right now, won't these companies suffer
There is a difference between what gets hurt and what stock prices go
down. People don't understand that concept. Typically, in a recession, when
are in the worst environments, the companies most negatively impacted
ones that actually do the best in the stock market.
Because they do poorly before the recession. Everyone knows it will be
for retail in a recession. So they kill retail stocks before they get
recession. Once they're in it, people start to look out to the other
the speculation shifts to this question: When is the recovery?
That is when you
see cyclical kind of companies bottom out. That has
happened in every single
prior economic cycle. I think it's impossible for
housing stocks to get killed
any worse. Banks and finance companies have
gotten killed. Credit card companies
have already taken provisions so their
earnings and stock prices have gotten
killed. People expect the worst in the
credit card business.
Another Interview from December 31, 2007 Via Barrons: