What Is Going On & Why?
The U.S. stock market dropped more than 10% this month (but has since recovered half of the drop). That is notable because we haven't seen a drop of this magnitude in several years, although historically a 10% "correction" occurs once every year and a half.
Slowing global economic growth, massive global debt, and talk of rising interest rates in the U.S. have ignited the selling. While I do see significant headwinds, my longer-term indicators are not yet flashing "red", so we are riding out the bumps for now.
For conservative investors that are solely invested in bonds, the stock market drop has had no direct impact on your account. For everyone else, this is part of the normal volatility associated with long-term investing.
IF the trend of the stock market deteriorates further and my longer-term indicators turn negative, adjustments will be made to your account in an effort to protect it from a major bear market. |