<\/p>\n
It has been several months since I have posted to my very own “What My Intuition Tells Me Now” blog.\u00a0 Clearly that is a long absence.\u00a0 However, I promise you that I did not abandon you and your interests.\u00a0 My last guidance on the blog has held up until this point.\u00a0 However, I now feel that an update on the state of investing is needed.<\/span><\/p>\n Specifically it is my intuitive sense that the European sovereign debt crisis, while not resolved and while not impotent in its ability to cause multi-percentage point drops in equity indices, has passed the point of metastasizing.\u00a0 Put another way, I feel that investors around the world are at the point where they are no longer insisting on a resolution to the European sovereign debt crisis.<\/span><\/p>\n What seems to have occurred is that folks have done their research and are fairly aware of the scale and scope of the debt disease’s symptoms.\u00a0 That awareness has led to a greater propensity to turn attentions toward\u00a0investment opportunities and a greater\u00a0receptivity to take risks.\u00a0 For me it looks like the place to start is in the United States and its businesses.<\/span><\/p>\n U.S. corporate profitability is at an all time high, yet prices have not appreciated to the same degree as earnings per share.\u00a0 What that means is that the financial markets look inexpensive to me.<\/span><\/p>\n So what makes sense in this situation?\u00a0 I have recommended to several friends that an allocation of half of your portfolio to U.S. equities looks attractive.\u00a0 Me?\u00a0 I have a greater proportion in small-capitalization stocks because I feel that the innovations incubated within them are likely to be highly rewarded with price appreciation going forward.<\/span><\/p>\n Additionally, I can’t help but think as I always do, about investments that pay actual hard cash to their investors.\u00a0 That category would include: convertible securities, preferred stocks, high-dividend paying stocks and corporate bonds.\u00a0 Especially intriguing to me would be a short to medium-duration corporate bond fund with an average credit rating of A to BBB+.\u00a0 Does such a thing exist?\u00a0 I dunno.<\/span><\/p>\n Lastly, certain overseas markets look interesting.\u00a0 For example, Russia.\u00a0 Yes, Russia.\u00a0 Look for a way to own Russia broadly, like an ETF.\u00a0 Why Russia?\u00a0 Because they have a renewed commitment to stable capital markets as they are starved for Western capital.\u00a0 Additionally, the nation is awash in cash as high energy prices have bolstered the nation’s coffers.\u00a0 Lastly, debt rich\/interest payment rich Europe needs cash rich Russia.<\/span><\/p>\n Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" It has been several months since I have posted to my very own “What My Intuition Tells Me Now” blog.\u00a0 Clearly that is a long absence.\u00a0 However, I promise you that I did not abandon you and your interests.\u00a0 My last guidance on the blog has held up until this point.\u00a0 However, I now […]<\/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-4803","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/4803","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=4803"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/4803\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=4803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=4803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=4803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}