October 15 was quite a scary day for Wall Street with the index opened lower and plunged to its -3.04% in the early afternoon. The deepest intraday low since the -3.86% since the nosedive in November 2011. A buy the dip strategy subsequently kicked in with the index closed with a greatly trimmed -0.81% decline.
I hate to blame this on external factors but animal spirits rose with the Ebola scare exacerbating the fear. Economic and earnings reports are positive, in fact on the jobs reports unemployment claims came in with the lowest number since 2000.
You have heard me use the “history may not repeat itself but it sure can rhyme” saying many times, so looking back at march 2009 the S&P was down -7.40. All of you should know what happened since then. If you don’t then you need to call me and I will give you a quick review.
Corrections happen but discipline investing will always overcome and profit from them. There are a lot of things to buy now and these events like Ebola will become old news very soon. I have never made money buying at the high but buying at the low has worked pretty well.