{"id":424,"date":"2010-05-17T08:32:00","date_gmt":"2010-05-17T12:32:00","guid":{"rendered":"http:\/\/www.intuitiveinvestor.com\/web\/?p=424"},"modified":"2018-08-18T17:58:11","modified_gmt":"2018-08-18T21:58:11","slug":"acquisitions-pace-is-picking-up","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2010\/05\/17\/acquisitions-pace-is-picking-up\/","title":{"rendered":"Acquisitions pace is picking up"},"content":{"rendered":"<p><span style=\"font-size: 16px;\">As evidence that many of the fears running (like Chicken Little) rampant through the financial markets are overblown, many acquisitions are being announced.\u00a0 Unlike professional money managers, or\u00a0individual investors, both of whom are prone to skittishness, these investors are putting hard capital into real businesses that they intend to manage for profit.\u00a0 Those business interests also have their prices determined in a marketplace.\u00a0 So these acquiring firms would be foolish to be buying now if they had fears of a &#8220;double dip&#8221; recession because in such a scenario the prices of <span style=\"text-decoration: underline;\">all<\/span> businesses would decline and they could buy the same business for lower prices.\u00a0 Thus, buying right now is an indication of two things, a belief in a stabilizing economy, and that asset prices are only going to increase from here.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">I will not go into all of the deals, but they include: Universal Health Services buying Psychiatric Solutions; Prudential <span class=\"goog-spellcheck-word\">PLC<\/span> buying <span class=\"goog-spellcheck-word\">AIA<\/span> Group (an insurance company); and Man Group buying <span class=\"goog-spellcheck-word\">GLG<\/span> partners (a hedge fund).\u00a0 This latter deal is especially interesting.\u00a0 Hedge funds have the reputation of housing the &#8220;smartest&#8221; investors.\u00a0 Thus, if Man Group is willing to commit capital now, and in a firm whose value fluctuates with financial markets, it is a very strong indication that the economy has stabilized, likely growing, and that market fears are way overblown.\u00a0 In yesterday&#8217;s post I said as much.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As evidence that many of the fears running (like Chicken Little) rampant through the financial markets are overblown, many acquisitions are being announced.\u00a0 Unlike professional money managers, or\u00a0individual investors, both of whom are prone to skittishness, these investors are putting hard capital into real businesses that they intend to manage for profit.\u00a0 Those business interests [&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-424","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/424","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=424"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/424\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}