The abnormal developments of the past few weeks have tested the portfolios and the optimism of investors world wide. As the markets keep fluctuating, reminisce that: * Market volatility is normal, and is to be expected. * Your investments should reflect your risk tolerance and investment time frame. * Stay focused on your long-term goals.
If you are like most people looking at your 401(k) or IRA statements recently, events of the last few weeks may have you fearful, concerned, indignant, deprecated . . . or some other similar reaction as the values of many stocks and mutual funds have fallen.
Where ever you look, people are debating whether last Monday’s S&P 500 plunge of 8.8% combined with yesterday’s 8.3% loss at the lows and 3.8% loss at the close is the capitulation we need to call a bottom. Was the last-hour recovery yesterday a sign that the tide has turned?