Courtesy of Paul Price of Market Shadows
After no changes in actual Fed policy were made yesterday, markets around the world reacted badly to the non-news.
Stocks, bonds and commodities went down in unison across the planet. Did the values of any of those assets change by 2% - 8% overnight? Nope.
Did you sell into weakness? Traders might have, but investors should welcome the chance to buy assets at better prices. There are still no good alternatives to stocks in the quest to preserve wealth. (We discussed the reasons we're not worrying in the most recent newsletter, Don't Fear the Taper.)
Market Shadows Virtual Value Portfolio is still ahead by 19.5% (+30.0% annualized) since our Oct. 26, 2012 inception date, even after today’s carnage.
We used the sell-off to put our remaining cash reserves into shares of the Vanguard FTSE Emerging Markets ETF (VWO).