Wow on the Dow

The news today is sure to be replete with stories of the almost 1,000 point drop in the Dow Jones Industrial Averages.  That is pretty close to a 10% drop.  Ostensibly the stock markets value the worth of U.S. businesses.  Can anyone out there reading this honestly say that the value of almost all U.S. businesses today changed by 10% in the negative direction?  No.  Were stocks 10% overvalued, thus warranting a big time “correction” in values?  No.

In my opinion, the recent selloff in stocks is an excellent opportunity to pick up shares of U.S. businesses very inexpensively.  Right now I have not been so confident in the fundamentals of the U.S. economy – the bedrock on which all investing returns rest – since probably 2003-2004.  U.S. businesses are operating with no fat.  Debt levels in the economy have stabilized and declined.  Inflation is tame.  Consumers are spending, but more importantly, saving, too!  Employment is slowly improving.  And so forth.

Fortunately, I have about 1/7th of my portfolio in cash and am going to be a buyer of U.S. equities tomorrow.

Be well!

Jason