The headlines are screaming, “Largest point drop ever for the Dow.” The actual percentage drop was 2.5%. It takes a drop of 10% to be called a correction, we are not there yet. Over the past twelve months the Dow is up 21.3% according to MSN. Prior to yesterday, many investors were concerned that the Dow was too high to buy. The dips we have seen over the past few days should be considered a gift for those who either have cash or make regular deposits to their accounts. When the markets go down, we can buy on sale. Who doesn’t love a sale?!
Keep in mind, you are an investor. You are in it for the long haul. Take advantage of the dips. We regularly re-balance our clients’ portfolios to protect their portfolios. We sell gains and re-allocate to be able to keep those gains and buy on the dips.
No Chicken Little – it is not time to come out of your coop.