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Opening Statement from the October 2014 issue of Dividend Gems

First published on October 19, 2014 for subscribers to Dividend Gems

The irrationality of the masses coupled with the IMF’s attempts to play superman through its poorly communicated warnings spooked the market, paving the way for any reason to sell.

As German economic data came in weak, the markets used that as an excuse to bail, while bond investors rushed into the safe haven US Treasuries. Meanwhile, investors viewed trivial US economic data as a sign of weakness.

Ironically, once the panic selling subsided the IMF’s Christine Lagarde commented that the capital markets overreacted to recent events, as if to absolve herself from any blame.

Fortunately for subscribers of the Intelligent Investor and Market Forecaster, we nailed this latest series of selloffs which began in September and continued through mid-October.