As stocks have rapidly retreated, many of our readers have felt the pain. Some of them chose to stop following. However, as what we addressed several times in our newsletters, this correction/retreat is not a surprise at all. In fact, it should have been anticipated. Furthermore, the behavior of the portfolios you are following should be expected. There will be many bumps along the road, but the key here is to ask whether there is a mistake made in your investments, which is different from the temporary loss just incurred. To understand the difference, please refer to the following newsletter:
We also highly recommend the following two newsletters to anyone who hasn’t read it:
- July 29, 2013: Strategic Asset Allocation: The Good, The Bad And The Ugly
- July 22, 2013: Tactical Asset Allocation: The Good, The Bad And The Ugly
In the following, let’s review the markets first.
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