We don't usually like to track things on a weekly basis (we're long-term investors), but this week we were pleased to see some healthy clean-out hitting the markets.
The past few months have, in our opinion, been a bit heated. It definitely feels good in the moment to see stocks rallying in the same upwards direction, but it can lead to some funky side effects, like collective overconfidence and inflated stock prices.
But when the opposite happens and a correction strikes, you start to see people act irrationally, emotions take over... and all of a sudden, incredible businesses reach discount prices.
In short, we're thrilled when things are on sale.
So when we saw the 10-15% correction in markets this past week, you can guess what our first reaction was: "Which companies on our watchlist are finally at sale prices that we're excited about?"
It may seem counterintuitive, but market corrections are when we go into full overdrive and roll up our sleeves. Our investment team really buckles down hunting for opportunities.
One never knows when sale prices will hit, so we have to be prepared to strike for our clients.