Opportunity amid madness: Valuations more attractive in wake of panic-driven price drops

Buy opportunities have arisen

clock • 4 min read
David Kimberley is an investment trusts writer at Kepler & Partners
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David Kimberley is an investment trusts writer at Kepler & Partners

Since the pandemic started in early 2020, we have had the privilege of watching the two extremes of investor behaviour.

First there was a wild, bubble-inducing mania, which produced meme stocks and saw companies in various sectors reach astronomical valuations, often on the back of little more than hastily-put-together pitch decks and some computer-rendered 3D imagery. Moving into the end of last year and the first half of 2022, investors have gone into reverse gear. War in Ukraine, ongoing supply chain problems and inflation have all combined to put downward pressure on equities markets, with high-value companies being particularly affected. The trouble with the former phenomenon is there is not much ...

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