Last Wednesday the market went through one of the most volatile days since 2008. Many people decided to go to cash and pull their investments from the market and hide. I continually preach against trying to time the market (going to cash when the news gets scary). However, I have come to the sad conclusion that it will always exist.
Since last Wednesday the S&P is up 6% and now trying to take out the all-time highs. Selling at the bottom is the biggest mistake I see investors make and it is what I always hear that causes people to stay out of the market. Volatility is back so we must adjust to it. Investors love volatility on the up side but run for the hills on the down side. I have never made money buying at the top but most individual investors will always try. Remember, it is not the portfolio 90% of the time that causes failure but the investors mentioned earlier.
Once the Federal Reserve finishes their meeting this afternoon we will probably see another round of volatility. I will admit this is concerning but we need to take advantage of the decision and adjust accordingly. My observation is there are a lot more positive results from this decision than negatives.