So, what do you do? Is it the beginning of a more significant decline? A bear market? We haven't had a bear market since October 2002, nearly the longest duration without a bear market in history. During the ensuing bull market we haven't had a single 10% correction (based on the Dow Jones or the S&P 500). We're kind of in historic territory.
Or is this merely a much needed sell off to release some steam? It's like earthquakes. If you don't have a bunch of little ones, the big one to follow will be REALLY BIG! So, this is just one of those 3.8 Richter scales jolts. Enough to get our attention, but it doesn't mean "the big one" is coming, right?
I don't know. As of this writing, Asian market continue their slide into the next day's trading. If the Chinese drop is what precipitated the decline in U.S. markets, this doesn't seem to bode well.
Well, I guess the usual advice is to tell you not to panic. I'm certainly not planning to.