You don’t even know what a correction is.

I’m old enough to remember a handful of Jan-Feb sell-offs in recent years because it snowed too much. True story.

Or a quick 11% ripped out of the S&P 500 because China did something with the yuan one day. Or a 6.5% “Taper Tantrum” because Bernanke sneezed into a microphone somewhere. I remember everything – the details and the feelings I felt in those moments. It’s helpful.

So today, for the first time since who knows, we get a taste of what happens when volatility comes back. If you’re panicking today, then you don’t even know what a correction is.

The action on your screen today is perfectly normal.

You know what isn’t normal? The period leading up to this day, during which we hadn’t seen a 5% pullback from the high since July 2016! That’s the aberration. 215 days without a 5% pullback is a record dating back to 1996. It almost never happens.

This stuff right here, with a spiking Vix and red as far as the eye can see? This is what ought to happen from time to time.

Remember – the market only rewards us because we are taking risk. No risk, no benefit of being here at all.

Today we got the risk that leads to future reward. If you’re over 50, your portfolio ought not have borne all of the brunt of it thanks to asset allocation. If you’re under 50, you should be cheering. It’s way better to add dollars to a portfolio with markets off of the highs than on the highs – especially given the fact that you’ll be doing so, out of every paycheck, for the next few decades.

Now read this, again if applicable, and have an ice cold LaCroix.

See you tomorrow.


This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. sex commented on Sep 18

    … [Trackback]

    […] Find More Information here on that Topic: […]

  2. click here commented on Sep 22

    … [Trackback]

    […] Here you will find 70497 additional Info on that Topic: […]

  3. bitcoin loophole review commented on Sep 29

    … [Trackback]

    […] Here you will find 5988 more Info to that Topic: […]

  4. immediate edge reviews commented on Oct 01

    … [Trackback]

    […] Information to that Topic: […]

  5. 안전놀이터 commented on Nov 01

    … [Trackback]

    […] Find More here to that Topic: […]

  6. DevOps commented on Nov 18

    … [Trackback]

    […] Find More Information here to that Topic: […]

  7. commented on Dec 07

    … [Trackback]

    […] Information to that Topic: […]

  8. 5d diamond painting commented on Dec 30

    … [Trackback]

    […] Find More on that Topic: […]

  9. Netgear 802.11g manuals commented on Jan 19

    … [Trackback]

    […] Read More to that Topic: […]