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Collection: Peter Lynch - #5 'Secular Changes In The Market'



One thing we’re thinking a lot about it at Barron’s is the secular changes we’re seeing in the market where there’s so much disruption that we wonder if certain industries they may be cheap and they may just keep on getting cheaper.

I mean retail would be an obvious one in some cases victims of Amazon, but even the auto industry – very low price earnings multiples. Maybe the market sees something. Do you think secular changes is moving more rapidly now than it did in the 80’s when you were running money?


No, I saw the textile industry deteriorate. I was recommending all the stocks all the way down. I saw the [Inaudible] to go away. Industries can go from terrific to terrible. There is a great expression that textile industry that helped me a lot.


Textile industry?


Yeah, it’s always darkest before pitch black. (Laughter)

Just when you think things are terrible, they get terrible squared. I mean so just because the industry is getting bad that is not a reason to invest. Wait for things to get better.

Again, somebody might be involved the cement, might be involved in coal, might involve in iron ore, might be involved in plastics, they’ll see it aluminum picked up before I do. So, you might – that’s a cyclical turnaround that might last two or three years. You might see way before Wall Street sees it.



[YAPSS Takeaway]

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