This is a quick note on some significant events today.
Most of the people who I have been speaking with recently know that I have been looking for some merger and acquisition activity to add some calm to the market. My thoughts have been that corporate balance sheets are in much better shape than the 2008 financial crisis and comparisons made to that timeframe are unwarranted.
I felt that a few merger and acquisitions would show investors that companies are confident about their own business prospects and do not feel as inclined to hoard the record amounts of cash sitting on corporate balance sheets. The result would be a reduction of the volatile markets we have seen lately and a return to stability.
Today, there were four notable acquisitions made by Google, Cargill, Time Warner Cable and Transocean. Hopefully this is the beginning to the end of the violent swings we have seen daily for the last week and a return to a more fundamental approach to the market.
As always, I stress that in this ever-changing political and economic environment, sensible diversification is the key to weathering any market uncertainties.
Jason M. Vavra, CPA, PFS
jvavra@vavracapital.com
Disclaimer
The information contained herein is not considered an offer to buy or sell any securities referred to herein. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual investors. There is no guarantee that the figures or opinions forecasted in this report will be realized or achieved. Past performance is no guarantee of
future results.
