Nothing to Fear but Fear Itself?

Special Report from Camarda Chairman

The recent global selloff has brought anxiety to investors of every stripe, and it’s important to put the event in context.

Yes, it’s a disturbing drop.

No, it’s not the end of the world, the beginning of another major recession, or even the beginning of a bear market.

Market corrections—and this one was long overdue—are as normal and necessary as the market surges that bring the profits we all investor for. The chart, below—courtesy of our friends at Edelman Financial—really helps to put things in context. The red bolts down are selloffs. The green bolts up are the bull markets following the drops.

I think you’d agree the green far outweighs the red, and the pain is a small price to pay for the profit.

As our friend at Goldman Sachs commented this week, this market seems to have more in common with 1998—whose drop was following by a strong surge lasting into 2000—than 2008.

Yes, a bear Specimarket will eventually come, though I think it will be but another cyclical interruption in a long, “secular” bull market that will carry us into the 20’s at least.

But I don’t think this is it, and suggest you stand pat, and buy more if you can while stocks are on sale.

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