China’s Sell Off
Not a sign of worsening economy, a better opportunity because of fear!
Waking up on Monday morning with the knowledge that the Chinese market was reeling (-7% to -8%) and affecting all markets around the world, was not a great welcome to 2016. After the last 24 months of flat markets domestically and significant negative markets on the international front, the question that everyone has is “Why do we continue to own 20-35% international in our portfolios?” The answer is the same as last year at this time. These investments are a bargain, and we believe in the long-term fundamentals that support them.
I would like everyone to spend 5 minutes and watch a CNBC video that shows an interview with Andy Rothman, a great Mathew’s Asian Fund Strategist. This will put into perspective the fact that emotional decision making in the markets so far in 2016 has created downside risk and brings opportunities of value for us that choose to be unemotional.
CLICK HERE TO WATCH VIDEO [Then click Watch the Video after the title “China Sell off Not a Sign of a Worsening Economy”.]
After listening to this video, please email or call with any and all questions. After selling 8-10% of your portfolio on December 30th and 31st we are well positioned to continue our discipline of finding bargains in the global markets.