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Strategies & Market Trends : Value Investing

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From: Grommit1/8/2016 12:35:34 PM
   of 78740
 
OT to value stocks, but info on china/psychology:

1. Krugman discusses psychological linkages:
"my best guess is still that things won’t be that bad — nasty in China, but just a bit of turbulence elsewhere."
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2. Interview on PBS news hour last night said the same thing:

GWEN IFILL: What’s that connection between a 7 percent drop in China and a 400-point drop here?

DAVID WESSEL: I think it’s hard to understand in economics. It’s easier to understand on psychology. It’s a kind of panic or a sense that the world economy is just not in as good shape as we thought and so everybody is chasing everybody else.

GWEN IFILL: And that is something in which this psychological panic is always what drives markets, not necessarily anything that makes any other kind of economic sense.

DAVID WESSEL: Absolutely. Absolutely.

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3. I agree with #1 and #2 and that there is some overall market risk. But my portfolio is already pretty wimpy.

4. recently added SPWR on the dip. Added to NEE (owned since 2/2010). Started VPU.

5. Good SPWR article here
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