Stocks down over 200 points – again, “That’s what has brought out the panic,”

Dow oct 13 2014

It’s never time to panic. That is certainly doubly true when it comes to investing. But it takes a disciplined mind to avoid freaking out as shares continue to march lower day after day. And in the midst of the chaos to make wise decisions.

Of course sentiment can change on a dime. Who knows, perhaps tomorrow we’ll be up 300 points. But the herd is definitely spooked. First by a Fed which is trying to taper its extraordinary measures and secondarily (though it’s not talked about much even now) by Ebola.

I remember almost 6 years ago to the day the hell which came on the wind to hammer markets. The tempest is not nearly as strong this time, (yet?) there is no Lehman Brothers twisting in the wind this time, no weekend meetings of the FOMC, but it feels like the most pronounced downturn in the markets since 2008. Though it should be remembered that we have had a half dozen or so of these things over the last few years.

But at least right now, this dip feels different than those.

(From CNBC)

“There is a huge question mark about what does growth look like. The U.S. was the best house in a bad neighborhood, but we didn’t realize the neighborhood might have been deteriorating faster than we realized. Europe is a big question mark, and China seems happy with its lower growth rate,” said Kim Forrest, senior equity analyst at Fort Pitt Capital.

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