I was looking at ACAS and hunting for relevant news that might explain the apparent panic afoot, and I noticed this:
Since ACAS was "downgraded" from "hold" to "reduce", it is (despite its recent precipitous fall) up by 46.52%. Apparently, timing ACAS isn't their specialty, either. Interestingly, the ratings folks seem to rate their own ratings, too. Let's see how that works:
It seems that the ratings specialists "upgraded" ACAS to hold, and it outperformed the index to which it was compared, the ratings specialists called that a "correct" rating. "Hold" for an index-beating return. The more recent period, the ratings specialists admit to be incorrect. Yet, the rating stands at "reduce".
If they stood by their rating, you'd expect a report that said "just you wait!" But, no. It's "incorrect" but it remains the rating :-)
I'm interested to hear anyone's take on the recent price action. Uncertainty and volatility both work against comparables pricing (thus against NAV), and doubt about the macro-economic environment weighs against performance of ACAS' broad-based portfolio (which one expects to behave as a leveraged proxy for the overall economy).
Buffett has bet long-term on the economy of the US. Is there reason to doubt ACAS can hold on for the long term?