The S&P 500 $SPX500 fell by 3.5% yesterday, and it is at the same level it was a week ago. I wouldn't call this a crash. What happened in March, this is what we can call a crash. The NYSE Composite was at 2007 level. But the S&P 500 falling by 3.5% from all time high is hardly a crash, especially in such a volatile year where the Vix index $VXX remained quite high.
It is still unknown why there was a market selloff but September is known to be a bad month for the stock market and investors will try to hedge against that and actually making it a bad month.
What shall we do? Sell everything? No, actually, we need to observe what's happening. It is too early to start buying stocks since they are still expensive and it makes no sense to sell stocks. The selloff is mainly because of tech stocks with Apple $AAPL falling by 8% and Tesla $TSLA already entering a bear market. The money has to go somewhere and it is unlikely to go into bonds where real yields are near zero or negative. What's happening is a rotation. Non-tech stocks did quite well yesterday. For example, JPMorgan Chase $JPM was down only 0.3%.
Now is a good time to have a properly diversified portfolio with securities with low correlations with each other and with the market. And I will advise you to keep buying stocks which are undervalued. This strategy doesn't change. As for the stocks which were expensive, they are still expensive.
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