Are we on a rollercoaster? If you’ve been feeling like the stock market has been much more volatile lately, guess what? You’re right!
For the last few quarters we’ve talked about the equity markets getting more volatile and the potential for a market correction, but nothing rattles investors quite like the storm after the calm. If you feel shaken, that is understandable. Volatility is back.
A massive selloff kicked into high gear on August 21, 2015 when the Dow Jones Industrial Average reached official correction territory, which is defined as a drop of 10% or more. Wall Street is still trying to gauge what will stop the landslide and stabilize the battered market. Fear and panic are setting in as no one knows how bad the ultimate decline will be, and the media is not helping investors by constantly warning us to watch out for when it’s safe to dive back into the market.