That is the most important thing we should remember in this volatile time. Markets will always go up and down and sometimes it is nothing to panic about. Other times it is truly a bubble. This time is probably not a bubble or the start of another recession. Stocks are not crazy with valuation except a few which is always unavoidable. Earnings are expected to be less per share than forecast in the beginning of the year but that might be because of not buying back stock, commodity price differences, or the consumer is not spending as much but saving. The jobs numbers look okay, the Federal Reserve is still buying fewer bonds.
I think this has to do with some uneasiness about ISIS and ebola. It is also expected to happen when the Fed slows down bond buying and might get near to raising interest rates. All of these combined to create a high volume selloff but will probably just end up as smoke.
As long-term investors we cannot be skittish when the market goes down 10% just like we cannot be over jubilant when it goes up 10%. We know it goes up and down and we are riding the wave. We make big moves when the research says that is a good idea. Don't go out and sell everything today because it might go down some but I can almost guarantee that it will go back up. Not sure when but it will in the end. Stay the course and Happy Investing!
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