Over the last two weeks the market decided to catch up; from no volatility to an unusual amount of volatility. Historically, it is not unusual to see this in September and October. However, we are just 3.5% off the all-time high of the S&P. This is not a correction; that would take a 7 to 10 % drawdown. The fears that are bothering investors really have no basis. In fact, there are a lot more positives than negatives in the underling economy.
With a three day weekend coming up maybe this will give investors a chance to reevaluate their positions and redeploy cash into what is now a much oversold market. I will be sending out a more in-depth explanation of the current fate of the market Tuesday. With the 10 year note at 2.3% why would you want to not stay in stocks?