Relax, The World Is Not Ending
By Roger Nusbaum AdvisorShares ETF Strategist
The equity market is under pressure from a confluence of news related to economic data, geopolitical tension, default in Argentina, the Fed and a few other things.
Hopefully you are not watching the parade of analysts on CNBC questioning/opining on whether the bull market is over. While it is true that there is a long list of things to worry about the fact is there has been a long list of things to worry about all the way up from the bottom in 2009. No one knows when the bull market will end, anyone you see talking about it is just guessing and of course some percentage of the guessers will turn out to be correct.
What we do know is that all bull markets end and when they do they go down a lot and scare the hell out of a lot of people as if it’s never happened before. We also know that once the market is done going down it will go back up and make a new high. This is something we talked about before, during and after the crisis and is still true today with only variable being how long it takes to happen.
There is nothing that can happen in the market, price-wise, that hasn’t happened before. If you have some sort of strategy you believe in for defensive action then what is important is that you stick to it and do so without emotion.