It’s going down for reeeeaaaalllll… ‘it’ being the stock market… what a week. And no, I never took Latin – that’s why Google was created, because who the hell has time to study Latin?
What I do have time for, on the other hand, is the stock market. I pay attention to it, and more often than not, it treats me pretty well. That is until concerns over China exploded and the investors flipped out, leading to this terrible, horrible, no good, very bad week.
Value investors have been thinking about, nay lusting after, a crash like this for some time now. Years of hoarding cash (as can be seen here and here) have left many investors ready to pounce whenever a substantive correction would finally arrive. I’ll speak for myself; having kept about 25% of my funds in cash, I’m excited to sit back, let some panic take hold, and then pounce on some tasty bargains.
In the coming days/weeks, my goal is to start posting more about individual companies, specifically describing my process for evaluating them. I see process as very important, as it helps partition off decision-making from emotion. If this slide continues, it will create buying opportunities. Apple is not intrinsically worth 20% less than it was a month ago; people are scared. Mr. Market may be on a wild ride… when the music stops and the panic subsides, it will be time to strike!