First of all it wasn’t a rout. It was barely a 2% sell-off. It’s just that at these lofty numbers, the Dow drop of 318 points sounds bigger than it really is. You’ll hear explanations from too much complacency, winding down of Fed QE, to troubles in the Chinese shadow banking problems and many more. One thing’s for certain, insiders at major corporations didn’t get hurt too bad as they have been unloading their stock holding for weeks on end. That also means there is plenty of money to buy the dip too but I daresay you’ll see any buying in the dozens of momentum stocks all down 4-8% today. In my opinion, this is nothing more than a garden variety sell off but there are warning clouds on the horizon. The slope of the market’s rise since 2009 has been unlike any time period in most people’s investable lives except one. That’s the blitzkrieg era of the first Internet from 1995-2000. Ironic then isn’t it that the hottest stocks and most overvalued stocks today are the “new” Internet stocks. They say history doesn’t repeat, it rhymes. In this case it’s chiming pretty loud. Our partners can see our latest holdings at saxangle.com/fund-holdings-1-24-14/
