You call that a sell-off?

I am arguing that yesterday's selloff is not a watershed event and basically a non event. Jeff Macke called the article a very Russian one, when I inquired why he explained "My ancestors ate frozen wood while staving off Napoleon.

You call that a sell-off

See an article I recently wrote here. In this piece, I am arguing that yesterday’s selloff is not a watershed event and basically a non event. Jeff Macke called the article a very Russian one, when I inquired why he explained “My ancestors ate frozen wood while staving off Napoleon. 300 points doesn’t scare me.”

But 2.3% decline on 25% plus appreciation over last 12 months? That is not just me being “tough Russian” that is just common sense. This sell of in financials created opportunities in two of my favorite stocks First Marblehead (FMD) and US Bancorp (USB) (OK, USB is less of a favorite, but 5.2% yield and ultra conservative management is what I look for in a bank, I don’t want any lending heroism or Star-Treckish will go where nobody has gone before).

Also, Jos A Bank (JOSB) lost 10 points in over last couple weeks, and its valuation is very alluring at this point. A weak economy may shave off couple points of its growth rate over next couple years, but it should still do EPS growth somewhere in the mid-teens.

Please read the following important disclosure here.

Enjoyed this read?

Share it with someone who’d love it too!

New to investing?

Explore these valuable guides to get started.

Value Investing
Student
Curriculum

The 6
Commandments
of Value
Investing

Letter to
a Young
Investor

Related Articles

Current thoughts on Tesla (TSLA)

Current thoughts on Tesla

Tesla market value of $780 billion mostly reflects Elon's future dreams, not car sales. The reality? Only $100-180 billion tied to the actual vehicle business.
Europe Can’t Hide Behind America Anymore

Europe Can’t Hide Behind America Anymore

Americans have always outspent Europe on defense, but to be fair, we have a currency advantage. Our military might elevated our currency to reserve status.
Europe’s New Status: The Children’s Table (IMA Client Dinner 2025 Video)

IMA’s March 2025 Client Dinner Video

Once a year, my company, IMA, hosts a dinner for our clients. Most of them live outside of Denver—and many outside the U.S.—so this event gives us a rare and meaningful chance to meet face-to-face, often for the first time, and really get to know each other.
The Reputational Bankruptcy of the American Dollar

The Reputational Bankruptcy of the American Dollar

The US dollar will likely continue to get weaker, which is inflationary for the US. Let me start with some easily identifiable reasons.

Leave a Comment