We Don't See Any Change In Last 15 Days That Would Spook Markets

We Don't See Any Change In Last 15 Days That Would Spook Markets

If you own stocks, we will venture out on a limb and say Wednesday was not fun. The S&P 500 fell -3.3%, its fifth straight decline.[i] Most European gauges fell, too. The S&P 500 is now down -4.9% in price terms since September 20, its most recent high, nearly halfway to correction territory.[ii] Whenever stocks fall fast, the urge to flee can be strong, but we think it is wrong—even dangerous—for those needing long-term growth to reach their financial goals. If you sell after a drop, and stocks bounce before you reinvest, you have locked in losses and missed a chance to recover quickly. That can be an unnecessary setback. So in our view, at times like this, the best thing investors can do is take a breather and think critically about whether anything has fundamentally changed for the worse since stocks' decline began.

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