{"id":423,"date":"2010-05-16T10:31:00","date_gmt":"2010-05-16T14:31:00","guid":{"rendered":"http:\/\/www.intuitiveinvestor.com\/web\/?p=423"},"modified":"2018-08-18T17:58:39","modified_gmt":"2018-08-18T21:58:39","slug":"fear-of-fear-is-generating-fear","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2010\/05\/16\/fear-of-fear-is-generating-fear\/","title":{"rendered":"Fear of fear is generating fear"},"content":{"rendered":"

Open question to investors: What’re<\/span> you doing liquidating U.S. stocks and going to cash?<\/span><\/p>\n

Open rebuttal to such thinking: You invest because you want to first, preserve capital, but second and more powerful, you want to make money.\u00a0 Where else besides the U.S. financial markets are you going to get access to innovative companies generating excess returns; a generally solid and honest financial reporting mechanism that conveys real<\/em> information (hello China, hello India); a solidifying economy where business and consumer confidence is growing (hello Europe); a strong and growing stronger currency (hello Europe); a (sometimes too strong) harmonious accord between government, business and the populace that allows for rapid capital appreciation; and large, liquid financial markets (hello real estate)?<\/span><\/p>\n

Is Europe experiencing a crisis?\u00a0 Yes.\u00a0 But the crisis has moved past a crisis of inaction to a crisis of action.\u00a0 This is a massive shift.\u00a0 Not only that, but the Germans, who are taking the lead role in resolving the crisis, are openly saying that they will not let the EU fail.\u00a0 This is also a massive shift in thinking on their part.\u00a0 Germany has transitioned from believing the Greek financial problems are a localized problem, to a global one that directly affects them.\u00a0 Therefore, it is highly unlikely that the EU crisis is going to be allowed to get worse.\u00a0 That means it is highly likely that what happens in Europe is likely to stay in Europe.\u00a0 Effectively, the EU is going into financial quarantine mode.<\/span><\/p>\n

So if you have taken care of all of the causes of fear and panic, you shouldn’t have effects of fear and panic.\u00a0 Unless of course the cause of the fear effect is simply fear itself.\u00a0 It’s my feeling that is exactly what is going on.\u00a0 One of my favorite investment quotes is from John D. Rockefeller.\u00a0 When asked about the source of his fortune he replied, “Always invest when there is blood in the streets.”\u00a0 Is there blood in the streets?\u00a0 There is a little bit.\u00a0 I invested for the first time since November two weeks ago.\u00a0 I have lost money in the short run.\u00a0 But in the long-run (5+ years) I am certain that this will have been a good time to buy interests in U.S. businesses.<\/span><\/p>\n

Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Open question to investors: What’re you doing liquidating U.S. stocks and going to cash? Open rebuttal to such thinking: You invest because you want to first, preserve capital, but second and more powerful, you want to make money.\u00a0 Where else besides the U.S. financial markets are you going to get access to innovative companies generating […]<\/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":[12,3],"tags":[],"class_list":["post-423","post","type-post","status-publish","format-standard","hentry","category-best-of-the-blog","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/423","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=423"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/423\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}