{"id":426,"date":"2010-05-20T10:46:00","date_gmt":"2010-05-20T14:46:00","guid":{"rendered":"http:\/\/www.intuitiveinvestor.com\/web\/?p=426"},"modified":"2018-08-18T17:56:51","modified_gmt":"2018-08-18T21:56:51","slug":"patience-in-the-face-of-fear","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2010\/05\/20\/patience-in-the-face-of-fear\/","title":{"rendered":"Patience in the face of fear"},"content":{"rendered":"

As I am sure each of you knows the U.S. financial markets have been taking a beating as of late.\u00a0 Precisely counter to my recommendation to buy into those same markets.\u00a0 Fear has been ruling the day.\u00a0 Fear that Europe’s economy may collapse.\u00a0 I hate to harp on the point, but while Europe may take longer to emerge from recession than the United States and it may even experience a double-dip recession, the crisis does have the attention of European policy makers.<\/strong>\u00a0 I think that it is nearly impossible that the disaster scenario being priced in by U.S. equity traders is going to unfold.\u00a0 Thus, I am urging patience for investors.\u00a0 My recommendation to buy was based on my belief that by buying now that you are going to be purchasing interests in U.S. businesses at prices that over a 5-10 year period will look very cheap.\u00a0 I still feel that way.<\/span><\/p>\n

Regarding Europe: I am more convinced now than ever before\u00a0that Europe will address its economic and EU-structural problems.\u00a0 German Chancellor Angela Merkel<\/span> is openly saying that Europe is facing an existential crisis and that it must succeed.\u00a0 Folks this is<\/strong> a big deal.\u00a0 Germany is the most important member of the EU and it understands what is at stake.\u00a0 As do the other nations of the EU and eurozone<\/span>.\u00a0 An important milestone occurs this Friday when Germany votes on whether\u00a0or not to live up its contributions to the Greek bailout.\u00a0 I am fairly certain that is what is causing everyone to fret.\u00a0 At this point it is difficult to handicap the outcome.\u00a0 Polls in Germany have the measure running at 53% for the bailout and 47% against.\u00a0 However, there is quite a lot of campaigning taking place on the “for” side of things.\u00a0 What if the vote fails?<\/span><\/p>\n

If the vote fails then to my way of thinking that makes the United States look like the safe harbor for global investors yet again.\u00a0 As I said in my blog posting last week: where else are you going to invest if you are a greedy investor (as are we all)?\u00a0 Cash?\u00a0 That’s a long-term solution?\u00a0 Yeah, right!\u00a0 Real estate?\u00a0 Good luck raising the debt needed to leverage returns on that.\u00a0 Foreign markets?\u00a0 Like where?\u00a0 Brazil where the leadership is courting Iran?\u00a0 India, where you still can’t count on the airplanes flying?\u00a0 China, where you still can’t trust the government statistics?\u00a0 In foreign currencies?\u00a0 Like the euro, which was trumpeted by pundits for the last several years?\u00a0 C’mon<\/span>.\u00a0 Folks will liquidate into cash then sit on that until they get greedy and watch 10-20% returns pass them by.\u00a0 U.S. equities are strong investments for all seasons because the U.S. is a great place to do business, has talented business leadership, a lean-mean fighting workforce, a recovering economy, and innovative ideas.<\/span><\/p>\n

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

As I am sure each of you knows the U.S. financial markets have been taking a beating as of late.\u00a0 Precisely counter to my recommendation to buy into those same markets.\u00a0 Fear has been ruling the day.\u00a0 Fear that Europe’s economy may collapse.\u00a0 I hate to harp on the point, but while Europe may take […]<\/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":[3,15],"tags":[],"class_list":["post-426","post","type-post","status-publish","format-standard","hentry","category-the-blog","category-predictions"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/426","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=426"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/426\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}