Volatility truly is a friend. Major indexes made some pretty insane moves not to mention individual stocks. Some say that the market is efficient and brutally honest with valuations. That may be true for most of the time but today there were absolutely insane, albeit brief, valuations for some companies. Look at NYSE:JNJ for example. Todays range was 81,79 – 95,21 USD dollars (market was still open when writing this). This for a company that is more stable than majority of the world’s nations.
All this volatility triggered some actions on my part. On August 18th I sold my BBL position for 35,43 USD per share and bought it back for 34,71 USD per share a day later. On August 21st I sold my Fortum position (160 shares) for 14,76 EUR per share and on August 22nd I bought 175 shares back for 14,45 EUR per share. These actions were triggered by emotional panic, taxes played no part on it if you know what I mean.
On August 24th I bought 220 shares of TeliaSonera AB for 4,71 EUR per share, 75 additional shares of Fortum for 13,99 EUR per share and 12 shares of Johnson & Johnson for 92,36 USD per share. That’s unusual amount of activity for such a short period of time. The slide might continue or it might not. Despite the worries in economy, I consider these valuations to be very fair. Next month I hope to add on BBL. Yes, the cyclical ones are taking a beating and that might even continue but eventually fear will pass and greed shall prevail.
http://seekingalpha.com/news/2742936-stocks-putting-on-midday-rally-to-erase-worst-of-losses