Or in the case of this October, trick only!
In a typical year, the stock market has one correction of about 10%, and three of 5%.
But not this year! This year we had no 5% but have been blessed with a second 10%. The S&P 500 corrected down to about -11.2% at its worse during the month, and thankfully has rallied a bit these last couple days.
It feels worse than that because most of us are invested in the leadership parts of the market, and those always carry the brunt of a correction. For example, the owner of the Smiley Box, Amazon, dropped 27% during the month!
So now what?
I have gone back and looked at all the indicators leading to the meltdown of 2008 and they simply do not yet exist. To me, this is nothing more than your typical scary correction. My observation has always been, that with a lack of other positive dynamic news, the market reacts to fear of the unknown, and we have several of those sitting in front of us.
We have trade wars, rising interest rates, and even elections coming next week. We are also observing a cooling real estate market, at least here in Puget Sound. These issues have not been resolved yet, thus fear of the unknown.
Because none of the indicators I use are showing cause for alarm, we simply sit tight, be patient, and continue to monitor for changes that would be cause for action.
Thank you for your continued Trust and Confidence.
Gregory G. Riggs, CFP
Accredited Investment Fiduciary
Securities and Advisory Services offered through KMS Financial Services, Inc. Member FINRA/ SIPC
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice. This information is for educational purposes only.