Your daily reminder of what this morning’s 300 point drop in the Dow Jones index looks like on a 5-year chart.
Remember, your time frame and risk tolerance are what matters. If those have changed, talk to your financial advisor, or re-evaluate your current asset allocation.
If you are currently investing for a shorter time frame, you should know, and accept that this kind of volatility is very likely to continue while the stock market shakes out its “too fast” run up from the Great Recession to now, as well as global instability such as the American election, structural issues in China’s economy, and whatever is going on in Europe this month.
Also, this is the first time in a generation the oil industry and the economy in general has seen oil prices this low. It’s no wonder people aren’t really sure what to do.
And, last, but definitely not least, don’t forget that most of this is computers trading amongst themselves.
Stay smart and keep sight of your goals. Don’t overreact to short-term market news and events.