September 15, 2014
By Peter Bower
This past week was all about a new stock issuance by the huge Chinese e-commerce company Alibaba. The interest and size of the offering is so immense that it seemed to suck all of the oxygen out of the room. There was nothing left for all of the rest. Mutual funds began selling other holdings to raise the cash for this new stock darling. As a consequence many other stocks languished or went down.
Additionally, higher interest rates are looming. The Federal Reserve meets this week to consider monetary policy. It is believed that they will start preparing investors for the inevitability of higher interest rates. This is a reality, but investors are not comfortable with this prospect. So throwing a hissy fit just might be what they do. We will see, but none of this has much to do with serious investing or the value of most companies. This too will pass. Stay steady, my friends.
el Solo Toro
