Valuentum's Guide to Recent Market Turmoil
publication date: Aug 25, 2015
author/source: Valuentum Editorial Staff
The global equity markets continue to face immense selling pressure.
Chinese markets have wiped out roughly $4.5 trillion in wealth the past couple months alone, and the Dow Jones Industrial Average today racked up its fourth consecutive 200-point loss, the longest streak in its storied history. Major US market indices, including the S&P 500, are in "correction" territory, which is defined as a 10% decline or more from their recent highs.
For those that have been following Valuentum's work, you know that we've been all over the recent developments, putting readers far ahead of the market movements. From the email alerts on removing the positions in Kinder Morgan and Energy Transfer Partners to trimming the position in Apple to retaining outsize 30%+ cash positions in both newsletter portfolios, we've been expecting a fallout such as this one.
In fact, we even said: "Here Comes the Correction" on July 7, a very timely call when the S&P 500 was north of 2,050. The S&P 500 now sits at 1,872. Here's the article, one in which we also emailed to members: Here Comes the Correction. We only want to bring it up to show you how hard we are working for you--to get the right information to you on a timely basis in advance, without overloading your inbox with irrelevancies.
If you weren't alerted on July 7 of the coming wave of selling, we wrote on August 20 of the coming "Flight to Safety." Here is that article: The Flight to Safety, where we outlined three major reasons why we thought the wave of selling had just begun: China, oil, and valuations. We used that very article to explain why we were lightening up on some of our over-weighted positions in the recap of last week, included in the Friday email.
We've been issuing daily commentary on the website ever since, as our concerns have continued to grow. Here are the latest articles through today:
Friday, August 21: The Dow Crashes 531 Points
Monday, August 24: The Debt Bubble Is Deflating; Will It Pop?
For those that may have been caught off-guard, please be sure to also follow me on Twitter for some of my interim thoughts on the market. Here's a Tweet from this morning where we felt the Dow Jones would end lower on the day after a 500+ point open.
It happened: http://www.valuentum.com/articles/20150825_2
My handle is @ValuentumBrian
For those members that are just getting used to Valuentum, you've found us at a great time. The combination of advanced discounted-cash-flow-based valuation information coupled with a technical/momentum assessment and the knowledge and experience of the Valuentum Team has never been shown to be more valuable than in the past couple weeks.
I wanted to thank you personally for paying attention to our work (it means the world to our team), and I trust you've found our information pertinent and valuable in preparing for the market slide. In the coming weeks, we'll be working through updating individual company reports, valuations, VBI ratings as well as the screens on the website. This will take time, and it is a process. Please stay tuned for further updates.
My continued best wishes.
Brian Nelson, CFA
President, Equity Research