"Many sit on cash: Could the markets get any more confusing?" by: John Sample

   Fundamental will win out but there is no ignoring demand exceeding supply.
   Last week started off with promise but ended down extending the losses to three straight weeks. 
   There is much to point to for an explanation. One could be that markets actually perform better when we have grid lock in DC. 
   There is a possibility that the Democratic Party could capture both the House and Senate and, of course, the Executive office. 
   I tend to think that at least the Senate may remain in the Republican control but that may be tenuous at best. 
   The ability for investors to to actually predict and benefit from the results has been low. 
   While elections capture the nation’s attention of the public, DC moves much more slowly than politicians would like you to believe.
   While you wait, the value of your home continues to climb. For all the thought that younger Americans all will stay home with their parents, people are buying houses faster than they can come to market. 
   We are seeing a trend away from congregating in cities. 
   We can attribute such to the impact of Covid and the historically low interest rates. It has raised the equity in owner’s homes and dropped the level of foreclosure. 
   While it is great to know your net worth is increasing and you have the ability to lower your monthly mortgage payment, selling and moving is no bargain. 
   Where are you going to find a suitable replacement? 
   They just don’t seem to make it easy for us.
   We are going to move into Fall this week and that brings more thoughts of a second wave of Covid. 
   That concern is front page in Europe which sent equities markets south early this week. Then there was news of investigations of banks and money laundering sending financial stocks south. 
   Trying to take shelter in old line fundamental companies doesn’t find traction so far. 
   It just seems like most late September and early Octobers with volatility.
   Many of my friends have called and asked the question on what they should do in such uncertain times. 
   Most are sitting on cash that is earning little or nothing. It is however not losing as this market corrects. 
   Being a value investor I suggest patience. I am not advocating catching a falling knife. 
   There is just little value. There is however quality companies paying dividends.
   Most would rather find a jot tech stock like last week’s IPO of Snowflake that tripled in value before dropping back to just a 100% gain by the end of the week. 
   Assuming you could get in at the offering price, good luck. 
   Most tech stocks are now in the cross hairs. 

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