Markets Cascade To Levels Not Seen Since Three Weeks Ago!
Look at that font! Think they're trying to scare viewers into taking action?
One of the best SNL bits ever and seems on target for what was a 2% drop today, for the week the S&P 500 was down 3.9%. That seems like a lot but January was a blowoff month (stocks up a lot). Everyone said it was a blowoff and based on this week, that sentiment was correct. YTD the index is up 3.26%. At the close it is that same 3.9% from its all time high.
CNBC seemed to be whipping up fear in its coverage today which is what it always does; when things are going well buy more! and when there is a decline or a dip this is serious! The decline is nothing. It might evolve into something but there is no way to know which is why the best course of action is to stick to whatever strategy you laid out for yourself when you started out.
My strategy attempts to avoid the full brunt of large declines. Right here, right now we have a small decline and small declines go with the territory. My indicators are a breach by the S&P 500 of its 200 day moving average, an inverted yield curve and the 2% rule (average 2% decline, three months in a row). Whatever your strategy is, just stick to it, you chose it believing it was the best one for you, so just stick to it.