The headlines from yesterday were all about how the markets fell almost 1,000 points after yesterday’s open. The headlines should have said the Dow Jones fell 1,000 which is a big drop but the Dow isn’t a good representation of the market. I prefer to look at the S&P 500 which lost 77bps.
The markets eventually rebounded and cut those losses in half but of course the local news is yelling about these huge losses and how your 401k lost all kinds of money.
You know the markets are down when your local news broadcast is talking about the markets. This only happens during the extremes of the markets.
These moves are all reactions about the fears of a slow down in China. Chinese slow down is a big deal but everyone will be calling for the world to end because of what happened yesterday.
Here’s what won’t happen and what you shouldn’t do:
- The world won’t end.
- Financial markets won’t collapse
- Withdrawal all your 401k assets to buy silver.
- Hurt yourself or others
- It’s probably still not a good time to go all in on those Chinese penny stocks.
If you still want to do those things then I have some really nice Florida swamplands especially for you.
Here’s what you should do: turn off the TV and chill out.