So, in the last 6 trading days, the market is off just over 5%. This sets us back to where we were way back in…July. I say that with tongue in cheek to remind you that these kinds of fluctuations happen, both up and down. There are several reasons for this one, but the primary reason, once again, is uncertainty.
This article really does a good job of discussing the fears and the worst case scenarios facing us right now, which really aren’t that bad in the grand scheme of things. And while taxes are certainly sure to go up, 1) they aren’t really going up that much, 2) they are going back to where they were 12 years ago, and 3) they will still be far below where they’ve been in different points of the last century, to include the 1980’s! We and our parents adapted and survived then, and so will we now.
One more fact: the S&P 500 is 8.3% above where it was a year ago today. That’s a pretty good annual return if you ask me.
Bottom line: ignore the volatility, stick with your long-term objective, and rebalance regularly. And realize that the media is out to scare you to gain attention and/or make money. It seems like only yesterday that Y2K was coming and we were led to believe that the whole world was going to collapse in chaos; how did that turn out?