As a reader of this blog, this should come as no surprise to you as I have been harping for months on the fact that the signs of an economic recovery are more wishful thinking than reality.
Stocks got slammed as fear spread worldwide that any recovery might be weak at best as many had a chance to digest Friday’s consumer confidence data over the weekend. The U.S. followed the rest of the world down after nasty sell offs in China, Japan, India and Europe set the tone for this Monday. So much for the idea that worldwide diversification has any merits.
The big question now is whether this will be a one-day event or the beginning of more slippage. I don’t even want to guess, since it is out of my control anyway.
What is in my control is how I react should the markets head further south; my sell stop points are clearly defined, and I will execute them in the event we reach their levels.