Interesting Response Q: With rising interest rates likely to slow down house building in North America, do you still consider WFG a good investment? Should I take my profits or wait for the stock to recover from this swoon? I am not in urgent need of cash, and can probably wait out the recession.
Rising interest rates impact housing, but analysts predict 10 out of 4 recessions (ie. they do not always occur). Regardless, with WFG at 3X earnings and with $1.5B in net cash, it is already being recession-priced. We would be OK holding. The balance sheet is dramatically improved over the past five years. (5iResearch)