{"id":345,"date":"2010-02-05T07:44:00","date_gmt":"2010-02-05T12:44:00","guid":{"rendered":"http:\/\/www.intuitiveinvestor.com\/web\/?p=345"},"modified":"2018-08-21T09:18:33","modified_gmt":"2018-08-21T13:18:33","slug":"big-financial-markets-fall","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2010\/02\/05\/big-financial-markets-fall\/","title":{"rendered":"Big financial markets fall"},"content":{"rendered":"<p><span style=\"font-size: 16px;\">Good morning!<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Yes, yes, the U.S. financial markets took a big tumble on Thursday.\u00a0 The DJIA fell 2.6%, its biggest percentage decline since early July of 2009.\u00a0 While the S&amp;P 500 fell 3.1%, its worst decline since April of 2009.\u00a0 The big sell off is believed to have been triggered by fears that some of the smaller nations in Europe that are a part of the Eurozone may default on their nations&#8217; debts.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Folks, this is not news.\u00a0 Even going back to last year I said that one of the primary concerns for investors was what was happening in Europe.\u00a0 I specifically stated that Europe was experiencing a deeper, more profound recession that the U.S.\u00a0 I have reiterated these claims several times.\u00a0 So the big selloff yesterday was a welcome letting out of air from a mini-market bubble.\u00a0 While market valuations have been below peaks, they are still high historically and in the midst of a continuing global economic slowdown.\u00a0 While the U.S. has emerged from recession it was largely due to\u00a0massive government stimulus finally taking hold and a one-time build up in business inventories.\u00a0 There has been, and is\u00a0much to be worried about and I guess a large number of people finally figured that out yesterday.\u00a0 Geez!<\/span><\/p>\n<p><span style=\"font-size: 16px;\">The ironic thing is that these risks have been present in the system for over a year, but now because these issues are finally being priced into the market the likely perception of risk for most people has likely increased.\u00a0 Well that&#8217;s ridiculous.\u00a0 The economic risks remain the same today as they were two days ago; and the market risk just went down because the valuations of businesses just went down.\u00a0 What other product, besides stocks (i.e. interests in a business), feels riskier to purchase when the price is lower?\u00a0 Stocks are cheaper today than two days ago, which means that they are less risky.\u00a0 The question is, will they get cheaper and consequently, less risky?\u00a0 Honestly, I don&#8217;t know.\u00a0 Right now it <strong>feels<\/strong> like consumers, investors and politicians feel a bit queasy about life right now.\u00a0 Queasiness can ease or it can lead to vomiting.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">I like to buy\u00a0business interests\u00a0under several conditions:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 16px;\">When they are cheap and <strong>stocks still are not cheap<\/strong>.<\/span><\/li>\n<li><span style=\"font-size: 16px;\">Cheapness can ensue rapidly when there is a big selloff.\u00a0 However, I like to buy when\u00a0my intuition\u00a0suggests that the queasiness has abated.\u00a0 Unfortunately, I cannot feel an abating queasiness.<\/span><\/li>\n<li><span style=\"font-size: 16px;\">When a business has demonstrated a sustained ability to create and sell unique products and to manage its competition and details well.\u00a0 Because of the potential for additional risk pricing &#8211; i.e. more big stock market drops &#8211; I would be scrutinizing businesses that you like for potential purchase.\u00a0 And c&#8217;mon each of us is the customer of a business we like or knows of an excellent business through our working relationships.\u00a0 Start there.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 16px;\">Jason<\/span><\/p>\n<p><span style=\"font-size: 16px;\">PS &#8211; I am headed to NYC to meet with both my publisher and editor.\u00a0 Exciting stuff.\u00a0 Trust that I will still be diligently covering your back.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Good morning! Yes, yes, the U.S. financial markets took a big tumble on Thursday.\u00a0 The DJIA fell 2.6%, its biggest percentage decline since early July of 2009.\u00a0 While the S&amp;P 500 fell 3.1%, its worst decline since April of 2009.\u00a0 The big sell off is believed to have been triggered by fears that some of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-345","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/comments?post=345"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/345\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}