Whither the markets?

[Southie]

Re: Whither the markets?

@Southie

We don’t call V’s - referred to by an ardent reader. But our staff has been recognizing a valuation gap between Europe and the US. Last 3 days including today, we have been shifting some of the cash raised by selling the us market into European index fund.

^GDAXI,INTERACTIVE | Stock Prices | Quote Comparison | YAHOO! Finance](http://finance.yahoo.com/q?s=^gdaxi+interactive)

This chart of German DAX shows it bottomed right at the time your staff starting rebalancing INTO Europe. Up circa 13.pct.

Of course had europe gone down further u simpky would have continued rebalancing steadily into it. Since it was undervaluued. And hence getting cheaper as it went down.

This is the essence of long term investing. Don’t worry abt next minute or day or week or months or even year. If something is undervalued, keep putting little bit at a time.