The Markets Are Not Rattling Me, Still

I said yesterday that I did not believe that the announcement by the Fed was a negative for the economy, and despite today's even sharper decline of over 350 points, and like effects happening in other markets across the globe over the Fed's comments, I stand by what I said.

The declines in the markets are an overreaction, and I think the trend that the Fed is indicating is a positive one, not a negative one.

Sure, interest rates did infact rise to a two-year high. But the dollar also rose, and based on the most basic things, I think these are signs of a strengthening of the economy. Not a weakening. Granted, the interest rate hike is not due to the Fed, but rather due to market reaction to the Fed, and certainly the Fed raising interest rates would signal growth in the economy needs to be slowed down (a positive sign), but this is again, just a reaction.

The fundamentals are strong. The markets are overreacting. There is nothing to see here.

I am still a buyer. As I said two days ago, I am cautiously optimistic. I remain so. I can't control the impulse of big players on Wall Street to sell off their stocks and send the markets into a freefall. But I can control my targeted response, which is to react contrary to their negative, and buy into their frantic frenzy to sell.

Shares of my favorite companies are on sale. Shares of companies I have been waiting to buy that were overpriced are coming into target buy territory. I don't see any fundamental reason for the selloff. If the economy improves then the Fed will change course. How is that a negative? If the Fed is suggesting that the efforts it has been employing to prop up a poor economy may soon not be needed, how is that a negative? If the training wheels are not necessary, how is this a negative?

I'm not buying into the idea of the selloff. But you can bet your ass I am buying into the unfounded frenzy that's causing stocks to go on sale. The sharp declines cannot continue contrary to the fundamentals, and that means gains for anyone who is going to buy into this much needed dip in the markets.