Wait. On my last newsletter I suggest that we should ignore the noise and focus on the fundamentals. Two days later, the selloff begun and my theory is being tested, brutally tested. Take AAPL, for instance, an “anchor” in my portfolio: I have AAPL bought in tranches between 100 and 125.Some at 130. At the open today, AAPL got as low as 95 and now it at 105. I will wait because I still believe this is one of the best companies in the world- although I personally don’t like its products. As I wrote in the blog the selloff was caused by the conjunction of bad news in China, declining oil prices and an unclear FED statement. The panic that followed is the noise I was referring to. The fundamentals I am concentrating on are: the strength of the American economy and the awareness of the FED in regards to the world environment. It is true that if the situation in China deteriorates further, there will be an impact in the American economy as a result of slowing growth, thus the stock market will be affected. The FED knows that however, so my guess is that will prevent an interest rate increase this year. So, let’s not join the herd, panic and sell. At the same time it might be too early to enjoy the fact that stocks are on “sale” for the first time in 3 years. Let’s wait and see and then, with serenity, re assess the fundamentals and make a decision.