Wow! What a week. Uncertainty seems to have overtaken all fields of view for the moment and definitely for investors. What to make of this?
- We are in what is technically termed a ‘market correction’ with broad indexes down ~ 12%.
- This takes those indexes all the way back to – roughly October of last year. Certainly not decade’s worth of destruction.
- Nothing in the world, global economy or the markets has fundamentally changed since then.
- Nothing measurably or permanently bad for the economy or the markets has actually happened yet.
- Near term, the market appears to be pricing in later term worst case scenarios. Not unusual behavior for the market when fear has been fueled by concern over real ‘uncertainty’.
- Selling today will only transform a normal market decline into a permanent portfolio loss.
- The most measurable dynamic in the market today is fear.
- Markets are perpetually going up AND down on their way UP.
- When this stops, capitalism has vanished and your cash won’t be worth any more than your stocks or gold bars.
- But, markets returning to their upward climb have always moved higher than before the fall.
- Tune out the noise, turn off the news, curl up with an engaging book, go to the movies, watch some golf tv, get in some extra work-out or, whatever you find comforting & entertaining distraction for the weekend.
Have a great weekend and if you’re a client, please take two aspirin and call us to hear more if you feel like – we are on call 24-7 and always have been. You just might not have known it!
(Cell phone 423-470-1082)