{"id":435,"date":"2010-06-08T10:45:00","date_gmt":"2010-06-08T14:45:00","guid":{"rendered":"http:\/\/www.intuitiveinvestor.com\/web\/?p=435"},"modified":"2018-08-18T17:51:42","modified_gmt":"2018-08-18T21:51:42","slug":"shock-and-awe","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2010\/06\/08\/shock-and-awe\/","title":{"rendered":"Shock and awe"},"content":{"rendered":"<p><span style=\"font-size: 16px;\">I have to admit that I have been taken aback by the financial markets&#8217; big sell off over the last month, mostly due to concerns that the EU would implode.\u00a0 In my opinion the Europeans are making legal and economic reforms that have needed to be made for over a decade.\u00a0 My shock, and awe, is that these weaknesses have been inherent in the structure of the EU from the beginning.\u00a0 Yet investors were always content to look the other way in the past, especially as they bid up the value of the e<span class=\"goog-spellcheck-word\">uro<\/span> <span class=\"goog-spellcheck-word\">vis<\/span>-a-<span class=\"goog-spellcheck-word\">vis<\/span> the dollar.\u00a0 Once there was a crisis the weakness of the structure was made poignantly clear to those (who I guess were) previously in the dark.\u00a0 However, the EU response was noteworthy.\u00a0 What&#8217;s more, the EU continues to make important changes.\u00a0 Yet,\u00a0financial markets levels have not appreciated measurably.\u00a0 Instead jitters persist.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Why is this so?\u00a0 It only takes a very small percentage of investors to move the markets dramatically.\u00a0 Back in the dot.com era when trading volumes were gigantic and the volatility that pervades the financial markets today first took root, on an average day well less than 1% of market participants traded on a given day.\u00a0 Yet that &lt; 1% was able to move the Dow Jones Industrial Averages\u00a0up and down by hundreds of points in a day.\u00a0 My feeling is that a similar situation exists today.\u00a0 Very few investors&#8217; fears are creating more fear leading to more sell offs.\u00a0 A crazy situation, really &#8211; serving as another example of market herd behavior.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">What to do?\u00a0 When financial markets begin reacting to fears as opposed to data it is often a very good buying opportunity.\u00a0 I first said this about 1,000 points ago in the Dow.\u00a0 However, I still feel that for long-term investors (which I am) it is an excellent time to buy shares in businesses that interest you.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have to admit that I have been taken aback by the financial markets&#8217; big sell off over the last month, mostly due to concerns that the EU would implode.\u00a0 In my opinion the Europeans are making legal and economic reforms that have needed to be made for over a decade.\u00a0 My shock, and awe, [&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-435","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/435","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=435"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/435\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}